How to Get a Mortgage With an IVA or CCJ on Your Credit File in the UK

Yes, It’s Possible — But You Need the Right Approach

If you’ve got an Individual Voluntary Arrangement (IVA) or a County Court Judgement (CCJ) on your credit file, you might assume homeownership is off the table. It isn’t. Thousands of people in the UK successfully get mortgages each year despite having adverse credit histories — but the path looks a little different, and understanding your options is everything.

This article walks you through the realistic choices available to you, weighing up the pros and cons of each, so you can make a genuinely informed decision rather than stumbling into the wrong product.

Understanding What You’re Dealing With

Before comparing options, it helps to know how lenders view these entries.

• An IVA is a formal insolvency agreement that stays on your credit file for six years from the date it was registered. Active IVAs are particularly challenging for lenders, but even satisfied ones raise eyebrows.
• A CCJ remains on your credit file for six years from the date of the judgement. If it was satisfied (paid off) within a month, it can be removed entirely — a key distinction many people miss.

The older and more “resolved” these entries are, the better your chances. A CCJ that’s three years old and fully satisfied is a very different proposition to an active IVA registered six months ago.

Option 1: Specialist (Adverse Credit) Mortgage Lenders

This is typically the most realistic route for people with an active or recent IVA or CCJ.

Specialist lenders — sometimes called subprime or non-conforming lenders — assess applications on a case-by-case basis rather than relying purely on automated credit scoring. Lenders such as Pepper Money, Kensington Mortgages, and Together Money operate in this space.

Pros: - Will consider applications that high-street banks automatically decline - Can work with active IVAs (with IVA supervisor permission — more on that below) - Flexible underwriting that looks at the full picture

Cons: - Higher interest rates — typically 2%–5% above standard rates, so on a £200,000 mortgage you could be paying significantly more each month - Larger deposit usually required — often 15%–25% rather than the standard 5%–10% - Fewer product options and shorter initial fixed-rate periods

Tip: Always use a whole-of-market mortgage broker when approaching specialist lenders. Applying directly to multiple lenders leaves multiple hard searches on your credit file, which makes things worse. A broker searches on your behalf and knows which lenders are most likely to say yes.

Option 2: Waiting for Your Credit File to Clear

Sometimes the smartest financial move is patience. If your IVA or CCJ is approaching the six-year mark, waiting for it to drop off your file before applying can save you thousands of pounds in higher interest over the life of a mortgage.

Pros: - Access to mainstream lenders and far better rates once the entry has gone - Larger choice of products, including longer fixed-rate deals - Potentially lower deposit requirements

Cons: - You’re renting (or staying put) in the meantime, which has its own costs - House prices may rise while you wait - Doesn’t help if the entry is recent

Use the time productively: build your deposit, register on the electoral roll, clear any remaining debts, and avoid any new credit applications. The free services at MoneyHelper (moneyhelper.org.uk) can help you build a recovery plan.

Option 3: Shared Ownership

Shared Ownership schemes, administered through housing associations and supported by the government, allow you to buy a share of a property (typically between 10% and 75%) and pay rent on the rest. Some specialist lenders will offer mortgages for the share you’re purchasing, even with adverse credit.

Pros: - Smaller mortgage needed, which reduces lender risk and may improve your chances - Lower deposit required in absolute terms - A foot on the property ladder while your credit recovers

Cons: - Not all housing associations will accept buyers with active IVAs — you’ll need to check eligibility with the specific scheme - You’ll pay both a mortgage and rent simultaneously - Selling can be more complex due to the “staircasing” process

Getting a Mortgage During an Active IVA

This is the trickiest scenario. If your IVA is still active, you must get written permission from your IVA supervisor (Insolvency Practitioner) before applying for any new credit, including a mortgage. Taking on new credit without this permission could breach the terms of your IVA.

Your supervisor will typically want to understand: - Why you need the mortgage - How the repayments fit within your budget - Whether any equity or windfall needs to be declared to creditors

Some supervisors will support an application — particularly if you’re buying rather than remortgaging, and the mortgage replaces a comparable rent commitment.

What Deposit Will You Need?

Realistically, plan for a minimum 15% deposit with adverse credit, and ideally 25% or more to access better rates. On a £220,000 property (roughly the UK average in 2026), that means:

• 15% deposit = £33,000
• 25% deposit = £55,000

The larger your deposit, the less risk the lender takes on, and the more willing specialist lenders are to offer competitive terms.

Using a Mortgage Broker: Worth Every Penny

With adverse credit, a whole-of-market, FCA-authorised mortgage broker isn’t optional — it’s essential. They have access to lenders you won’t find on comparison sites, they know the specific criteria of specialist lenders, and they protect your credit file by doing a soft search before any formal application.

Look for brokers who specifically advertise experience with bad credit or adverse credit mortgages. Many charge a broker fee (typically £300–£600), but the rate they find you will almost always more than offset this cost.

You can verify any broker’s FCA registration at register.fca.org.uk before you commit to anything.

The Bottom Line: Which Option Is Right for You?

There’s no single right answer — it depends on your timeline, deposit size, and the age and status of the adverse entry. But the worst thing you can do is assume it’s impossible and stop there.

This article is for informational purposes only and does not constitute regulated financial advice. For advice tailored to your personal circumstances, please consult an FCA-authorised mortgage adviser or visit MoneyHelper at moneyhelper.org.uk.