An Individual Voluntary Agreement (IVA) is a legally binding arrangement between an individual in debt and the creditor to whom the debt is owed.
The primary goal of an IVA is to establish a structured framework for monthly repayments, typically spanning a five-year period, with the aim of making the debt more manageable.
An Insolvency Practitioner acts as an advocate, engaging with creditors to ensure the consistent and timely fulfilment of payment commitments.
While obtaining a mortgage with an Individual Voluntary Arrangement (IVA) can pose challenges, it is not an insurmountable task. If you find yourself in this situation, it is advisable to speak with a mortgage broker in Hull to explore your available options.
Affordability is the key consideration in an IVA. Creditors need assurance that you can sustain your repayments while also having sufficient disposable income to cover essential living expenses, including housing.
If you’ve entered into an IVA, it is likely that your credit history has been significantly impacted. Securing a mortgage with an IVA in Hull might present challenges, as lenders tend to be cautious about extending credit to individuals deemed high-risk.
Additionally, the lender will assess whether you have ample disposable income after meeting your IVA obligations to cover mortgage payments and essential living costs.
Post-IVA, it’s important to assess your financial situation before jumping into the mortgage process. Rebuilding your credit score, saving for a deposit, and planning your move are prudent steps.
Affordability should be a primary focus when considering homeownership, ensuring you have the financial means to sustain a mortgage.
Our experienced mortgage advisors in Hull are ready to help, evaluating your mortgage affordability and recommending the most suitable options based on your unique circumstances. To start this process, schedule a free mortgage appointment online or reach out to our team via phone.
Date Last Edited: 01/26/2024