Exact Answer: 6 years
IVA (Individual Voluntary Arrangement) is a formals way to avoid bankruptcy in tough situations. It is an agreement between you and your creditors who lend money to you by keeping a guaranty with them to make sure that you are not a fraud. This can be anything your car, your property, or your house as a guaranty.
When any mortgage transaction is made the debtor gets the money, with the promise of paying it back in the given time. The creditor will receive money back with a fixed amount of interest over time. This payment can be done monthly by the debtor. This is a good way to help yourself with loan repayment but you need to be very careful will choosing your creditor as the number of frauds is increasing rapidly. Many fake schemes are introduced by them and then search for the people who badly need funding.
How Long After IVA Can I Get a Mortgage?
You will be able to get a mortgage after the IVA drops off your credit file, the whole process of IVA is for 6 weeks but the record of IVA remains for the duration of 6 years or even more than that. Once IVA is removed from your credit file then you have a good chance of getting a mortgage and completion of mortgage you should try to improve your credit scores too.
This IVA can also affect your future credits as, if you apply again then this IVA will be in your profile and this may affect the mind of the creditor whether to lend you or not and on what terms and conditions. They will check every aspect that will you be able to repay all their money with all the interest or not.
| Process | Duration |
| IVA procedure | 6 weeks |
| Mortgage after IVA | 6 years |
Why it Takes That Long to Get a Mortgage?
This is quite a long process but once IVA is completed you can be happy that you are dept free now as you made the last payment. It has some steps such as the insolvency practitioner can apply to the court to temporarily stop the creditor to take any sort of action against the debtor like bankruptcy.
The IP will study your complete financial status your savings, expenditure, monthly income, and all your assets like the car so that you can raise more money for the loan repayment to the creditor. They will make a proper proposal for you and submit it to the court in which you will agree to repay your loan to the creditor in parts or full over a certain period of time which is normally three to five years.
A meeting of creditors is held to reject or accept the proposal of the repayment which is held in IP’s office. You must attend this meeting so that you can keep your idea in front of them. After is a 6-week long procedure when your repayment pattern is decided you have to repay the creditor and after your last payment all your dept is clear and no action can be taken against you.
Getting a mortgage after IVA is a long process it almost takes 6 years to remove it from your credit profile because first you have to pay your debt for which you get three to five years and after the full repayment all the documents work are completed by the creditor which might take some time.
Conclusion
IVA(Individual Voluntary Arrangements) is a lifesaver for all, this provides easy ways for the repayments to your creditors with plenty of time. These IVA are very beneficial as they allow you to repay only when you afford it, have fixed and reliable payments, your creditor can’t harass you, interest rates can’t be changed. This stops the creditors to take any legal action against you. They will study all your incomes, and savings and provide a good proposal for you and your creditor on which both the party agrees.