Can I Get a Joint Mortgage With an IVA?
Introduction
If you or your partner currently have, or previously had an Individual Voluntary Arrangement (IVA), you may be asking whether a joint mortgage is still possible.This guide explains how lenders treat IVAs, what criteria apply, and what you can realistically expect when applying as a couple.
This article is provided by Rokform Finance in Bristol and is for information only.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Can I Get a Joint Mortgage With an IVA?
Yes, it is possible but it is not straightforward.
An IVA is one of the most serious forms of adverse credit. It will significantly reduce the pool of lenders willing to consider a mortgage, especially if:
- The IVA is still active
- Payments have not been completed
- It has not yet dropped off the credit file (six years from start date)
- The individual has missed IVA payments
- There is other adverse credit (defaults, CCJs, arrears)
If one applicant has an IVA and the other has a clean credit record, lenders will still treat the application as higher risk because both applicants are jointly responsible for the mortgage.
Mainstream high-street lenders will almost always decline IVA cases.
You will typically need a specialist adverse-credit lender.
2. How lenders assess joint applications involving an IVA
Lenders take a structured, risk-based approach.
Key considerations include:
1. Status of the IVA
- Active IVA: Very limited lending options. Most lenders require it to be completed.
- Completed IVA: More options may open after discharge, but high-street lenders may still decline until the IVA drops off the credit file after six years.
2. Time since IVA began or was settled
- Less than 3 years since completion → Specialist lender likely required
- 3–6 years since completion → Some semi-mainstream lenders may consider
- Over 6 years and no further adverse → Lenders may treat the case more normally
3. Deposit size
A larger deposit is usually essential.
Typical expectations:
- 15%–25% deposit for specialist lenders
- Lower LTV = lower risk = higher chance of approval
4. Affordability and income stability
Lenders carefully assess whether the household can support repayments, especially given the history of financial difficulty.
5. Credit behaviour since the IVA
Lenders will examine:
- On-time payments
- No new defaults or arrears
- Low credit utilisation
- Responsible post-IVA borrowing
3. Impact on a joint mortgage when only one person has an IVA
Even if only one partner has an IVA, lenders treat the application as a combined risk because both applicants share liability.
Typical lender reactions:
- Mainstream lenders: Generally decline.
- Building societies: Rare exceptions, depending on completion date and current profile.
- Specialist lenders: Most realistic route.
The applicant without the IVA does not “offset” the adverse history, even if their income is significantly higher.
4. How much can you borrow as a joint IVA applicant?
Borrowing capacity varies depending on:
- LTV and deposit size
- Time since IVA
- Current financial stability
- Lender type (mainstream vs specialist)
- Whether the IVA is active or completed
Specialist lenders may reduce income multiples or apply stricter affordability rules.
High-street lenders may offer around 4–4.5× income for clean credit cases, but specialist lenders may offer a more conservative multiple depending on risk.
5. Interest rates and costs you should expect
A mortgage involving an IVA almost always comes at a higher cost due to the increased risk.
Expect:
- Higher interest rates
- Higher arrangement fees
- Stricter affordability checks
- Limited product choice
Rates can improve once the IVA is older, completed, or removed from the credit record (after six years).
6. Documents and evidence you will need
To improve your chances of approval, prepare:
- IVA completion certificate (if applicable)
- Full credit reports from all UK agencies
- Bank statements (3–6 months)
- Evidence of a deposit
- Payslips and proof of income
- Explanation of what caused the IVA
- Evidence of financial stability since the IVA
Specialist lenders often conduct deeper manual underwriting, so clear documentation is essential.
7. Practical scenarios
Scenario A: Active IVA
Joint mortgage possible?
Unlikely with mainstream lenders; specialist lenders may consider it with a large deposit.
Scenario B: IVA completed 12 months ago
Possible with specialist lenders, typically at higher rates and higher deposit requirements.
Scenario C: IVA completed 5 years ago with clean credit since
Some semi-mainstream lenders may consider, depending on LTV.
Scenario D: IVA over 6 years old and removed from the credit file
The case may be treated as standard if no new adverse exists.
8. FAQs
Q: Can we apply in just the non-IVA partner’s name?
Possibly. If the income is sufficient to meet affordability alone, this may be a cleaner option. Independent legal advice may be required if the non-mortgage applicant contributes to the property.
Q: Does the IVA need to be fully completed?
In most cases, yes. Active IVAs drastically reduce lender choice.
Q: Will the IVA affect the interest rate?
Yes. Expect higher rates due to increased risk.
Q: Can specialist lenders consider us immediately after IVA discharge?
Some may, but typically with higher deposits and manual underwriting.
Q: Will we have more choices after six years?
Yes. Once the IVA drops off your credit file, options improve significantly.
Nevertheless...
A joint mortgage where one applicant has an IVA is possible, but lender choice is limited, and specialist lenders are usually required, especially if the IVA is recent or still active.
Rokform Finance can help explain your options and provide information on lenders who may consider these applications.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
For information on joint mortgage options involving an IVA, contact Rokform Finance on 0117 287 0369 or email in**@************ce.com for impartial guidance to help you understand what may be possible.
