IVA finance -Advice, finance, information and guides from finance brokers. If you have an IVA lodged against you, obtaining a finance can be more difficult. Find advice, information and guides on IVA finance, finance with CCJ's, information on poor credit and bad credit finance, advice on finance arrears, guides on finance with county court judgements and solutions for bad credit finance through specialist finance brokers.

IVAs were brought in by the 1986 Insolvency act. Since IVAs were introduced, a large number of people have entered into IVAs rather than going down the route of petitioning for their own bankruptcy.

One of the big problems with IVAs is that once you are under an IVA (or have been subject to an IVA in the past) then it becomes much harder to obtain finance such as a secured loan or any other form of credit.

An IVA is an Individual Voluntary Arrangement. IVAs are an alternative possibility for people who have run into financial difficulties and who might otherwise have to declare themselves bankrupt.

An IVA is a formal repayment proposal made to your creditors (i.e. the people or businesses you owe money to). An IVA is undertaken with the help of a licensed Insolvency Practitioner.

To begin with, a meeting of your creditors takes place and if enough of them vote in favour of the proposal, then the IVA is accepted.

As a result, taking out finance with an IVA can be very difficult.

Fortunately, the specialist finance advisers we work with at Divadani Finance can usually arrange finance for people with IVAs. Thanks to their specialist knowledge of the UK finance market, they know which banks, building societies, and other secured loan lenders are likely to look most favourably on a finance application from someone with an IVA.

To find out more, please complete our online enquiry form.


FINANCE GLOSSARY

Arrangement Fee
A fee which is sometimes payable to the finance lender when you opt for a special deal, such as a capped, discounted, or fixed rate finance.

Base Rate Tracker Loan
See Tracker Finance.

Capital & Interest Loan
See Repayment Loan.

Capped Rate Finance
Finance where the interest rate is capped at a certain level for a set number of years. The interest rate can go up and down, but is guaranteed not to exceed this level during the capped rate period.

Cashback Finance
Finance which gives you a cash lump sum on completion.

Discounted Rate Finance
Finance where you get a discount on the interest rate during the initial special offer period.

Early Repayment Penalty
See Redemption Penalties.

Fixed Rate Finance
During the fixed rate period, the interest rate on this type of finance stays the same, regardless of changes in the Bank of England base rate. This means your monthly finance repayments are the same each month even if interest rates go up or down.

Flexible Finance
Flexible finance allows you to make overpayments and take payment holidays. These can be especially attractive for self-employed borrowers whose income may fluctuate throughout the year.

Redemption Penalties
If you repay your finance early, you may have to pay a redemption penalty to the finance lender.

Repayment Finance
With repayment finance, part of the amount you pay each month covers the interest on the loan and part goes towards repaying the finance capital.

Standard Variable Rate finance
The interest rate on standard variable rate (SVR) finance can go up or down during the course of the loan. Sometimes, the rate will remain unchanged for months at a time, but at other times it may fluctuate from one month to the next. The SVR charged by finance lenders is determined mainly by the Bank of England base rate, which is reviewed once a month. When the Bank of England changes the Base Rate, finance lenders will usually (but not always) adjust their SVR up or down accordingly.

Tracker Finance
When you have tracker finance (also known as a base rate tracker finance) the interest rate is guaranteed to move up and down in line with the Bank of England base rate. Consequently, it will always be a set number of percentage points above (or sometimes below) the Bank of England's base rate.