How much will my credit score increase when the IVA has been removed?

It’s impossible to say exactly how the removal of an IVA will affect your credit score as everyone’s financial situation is different. But there’s no doubt your chances of securing finance are much stronger without it showing on your records. There are steps you can take beforehand, such as ensuring you’re registered on the electoral roll and keeping up to date with all of your other regular financial commitments. This will all help positively impact upon your credit score when your IVA is finally removed from your credit file.

Do I have to declare an IVA once it’s been removed from my credit file?

Yes, in some cases a credit application will ask you to declare if you’ve ever entered into an IVA, regardless of when that was. In these instances you should answer honestly in order to avoid any potential repercussions at a later date.

Is it still possible to apply for credit with an IVA?

If you have an IVA getting new lines of credit isn’t completely out of the question but this would typically be only for quite low amounts (up to a maximum of £500 and pre-approved by your insolvency practitioner) charged at a higher interest rate.

How does an IVA affect a mortgage application?

Having an IVA against your name can make it more difficult to secure a mortgage as some lenders might decline you outright. It can also mean you could end up with a higher interest rate, since the lenders that will consider you might increase your rate to offset the risk. There are, however, specialist bad credit mortgage lenders who specifically cater for borrowers with IVA and they often have bespoke deals available. See our guide to getting a mortgage with an IVA for more information .