Renting with an IVA? 2025 Risks & Smarter Fixes

So, you’re renting and you’re in an Individual Voluntary Arrangement (IVA), or considering one?
Having an IVA doesn’t mean you’ll lose your home. However, it does mean you’ll have to jump through a few more hoops if you currently don’t have one or are looking to rent one, and some of these may feel higher than you’d prefer.

Your Current Rental: What Happens?

Breathe easy! If you’re already renting, having an IVA doesn’t mean you’ll have to leave your home. Landlords usually don’t check the credit files of current tenants.

Let’s take a closer look at what happens if you need to move while your IVA’s still showing on your credit file.

Here’s the truth:

• The IVA stain: The IVA will remain on your credit file for six years, even if you’ve completed your payments early.
• Public record: Your name remains on the Individual Insolvency Register until the IVA concludes.

What does this mean for you?

• Larger initial outlays: Landlords may request 2–3 months’ rent upfront, just to be safe.
• Private landlords: They can be more understanding than letting agents, so do not give up hope.

Let’s be honest: agencies prefer perfect credit. If yours isn’t perfect, don’t hesitate to approach a private landlord for an honest conversation.

Patience is key here. Even after your IVA is finished, it remains on your credit file for six years from the start date. Some lenders and landlords may still ask, “Have you ever had an Individual Voluntary Arrangement (IVA)?” Don’t let it get you down, just be honest about it.

If you’re dreaming of buying a place, high-street banks will likely say no for a while. Should you manage to secure a mortgage, it will be through a specialist lender at a higher interest rate, and you will require a larger deposit.

Let's be real: If you’re renting, an IVA isn’t always the wisest choice. Here’s why:

• Cheaper fixes exist:
  • Take a look at our Token Payment Method for unsecured debts; if followed correctly, the maximum outcome you can expect is a default.
• Fees consume your savings: IVAs can cost between £3,000 and £5,000, money that could be used towards your next deposit.

• Landlord scepticism: An IVA on your credit file may cause landlords to feel apprehensive, even if you’re a great tenant.

Let’s break it down…

• Credit checks:
  Be upfront with landlords. Try something like, “I’ve experienced financial difficulties in the past, but I pay rent like clockwork.” Honesty goes a long way.

• Deposits:
  Start saving as early as possible, aim for at least two months’ rent. It shows you’re serious and can make things easier if your credit isn’t in the best shape.

• Landlord doubts:
  Bring recent payslips and bank statements to viewings; proof of regular income and steady payments always outweighs promises.

Quick Tip - Private landlords tend to be more flexible than agencies and are often more interested in your story than just your credit score.