WHAT IS A LOAN UNDER INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)
A loan for people with IVA or under an Individual Voluntary Arrangement is a type of credit option designed for borrowers who are already in a legally binding debt repayment plan; these loans are typically offered by specialist lenders and can be used for urgent needs such as emergency situation.
Loans for people with IVA, unlike traditional bank loans, they are structured carefully to make sure they do not break the terms of the IVA and remain affordable within the borrower’s limited budget.
Loans for IVA clients, because of the higher risk, often come with stricter conditions, lower amounts, and sometimes higher costs compared to standard loans and borrowers should always seek advice and ensure that the loan is approved within their IVA, as taking on unapproved credit could breach the arrangement.
Are loan for people under an Individual Voluntary Arrangement available ?
Yes, it is possible to get a loan while under an Individual Voluntary Arrangement (IVA), but it is very limited and comes with strict rules. Since an IVA is a formal debt solution in the UK, any new borrowing must usually be approved by your Insolvency Practitioner (IP) before you can take it.
Important Requirements & Cautions
- Permission Required:
Borrowing more than £500 during an IVA requires written consent from the insolvency practitioner (IP). Administering any new credit without permission breaches the IVA terms. - High Costs and Strict Terms:
Lenders offering loans to IVA holders usually charge higher interest rates and may impose stricter terms due to increased risk. - Secured Loan Options:
Broader lending (like secured loans) may still be available from brokers who specialize in clients with an IVA, bankruptcy, or debt management plans — again, with IP consent.
Which lenders in the UK offer loans for IVA ?
If you’re in the UK and searching for loans available while under an Individual Voluntary Arrangement (IVA), there are options—though they’re limited and typically offered by specialists. Here’s what reputable sources reveal:
Notable Specialist Lender
Sprout Loans
- Offers tailored products like IVA Early Settlement Loans designed to help borrowers finish their IVA sooner.
- Also provides IVA-specific car loans and personal loans, exclusively for existing IVA clients.
- All offerings are structured with fixed repayments and without upfront fees.
Specialist Mortgage Brokers & Providers
IVA Mortgage Expert
- Not a lender directly, but an expert broker that connects IVA clients (current or past) with mortgage lenders willing to work with them.
- They offer access to exclusive mortgage products tailored to those in or exiting an IVA.
ivamortgageexpert.co.uk
Simply Adverse
- A whole-of-market mortgage broker specializing in applicants with IVAs and adverse credit.
- They work with a variety of niche lenders and high street options to help clients position for mortgages even during or after an IVA—all with no upfront fees.
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