What an IVA does to your credit file
An IVA is recorded on your credit file for six years from the date it starts. Costs, risks and what actually happens, explained without the sales pitch.
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What lenders actually see
Three things, and they compound: the IVA marker itself, the defaults registered by each creditor before the IVA started, and the closed or settled status on those accounts. The defaults typically drop off six years after their own default dates, which may be before or after the IVA marker goes.
During the IVA
Most IVAs restrict borrowing above a modest threshold — often £500 — without the supervisor's consent. Bank accounts are a practical concern: some banks close accounts on insolvency, and it is sensible to move to a basic account with a bank you owe nothing to before the IVA starts. Mortgages during an IVA are very difficult and remortgaging is a specialist market.
Afterwards
The IVA is marked as completed and drops off six years from the start date. At that point your file is not automatically good — it is largely empty, which lenders read as unknown risk. Rebuilding usually means a modest credit-builder product used carefully, the electoral roll, and time. Twelve to twenty-four months of clean history after the marker clears makes a real difference.
What it does not affect
An IVA does not appear on a standard DBS check. It is not a criminal matter. It does not automatically affect your right to rent, though some letting agents credit check, and it does not affect most employment — with the important exceptions of regulated financial roles, some legal and accountancy positions, and company directorships.
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Common questions
Can I get a mortgage after an IVA?
Yes, though not usually on high-street terms immediately. Specialist lenders consider applicants with a completed IVA, generally wanting to see it satisfied, a deposit larger than average, and clean conduct since. Once the marker has dropped off entirely and you have rebuilt some history, mainstream options open up. A broker who works with adverse credit is worth more than applying directly and collecting refusals.
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