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i The advice on this page applies to residents in England and Wales only.

Remortgaging your house. What will happen during your IVA.

If you own a property there'll be restrictions on it for the duration of your IVA. You won't be able to re-mortgage or sell it without your Supervisor’s permission.

All the details about what will happen to your property will have been written into your proposal. We always contact our IVA clients before any scheduled re-mortgage so you know what you need to do.

Dealing with your property

How your property is to be dealt with is written into your IVA proposal, and a copy of the property terms will be sent to you when we start the review. This is usually six months before your IVA is due to finish.

What will happen at this review?


  • ask your secured lenders for an up-to-date redemption statement (this shows how much it'll cost to pay off all of your mortgage at that point)
  • complete a valuation of your property
  • send you a copy of the property sections from your IVA proposal

Here's more detail about each of these stages:

Redemption statement

We'll write to your secured lenders to get a recent redemption statement.

If we're unable to get the statement we may need to contact you to ask your secured lender to provide the redemption statement.

Valuing your property

The valuation of your property is completed online. However, in some cases we may need to instruct a local surveyor to visit your property.

Re-mortgage guidelines

The remortgage is based on 85% loan to value of your property.

This is worked out by reducing the value of your property by 15% and then taking away the amount left on your mortgage from this figure. The amount thats left over lets is the equity that's available for your IVA.

Once this calculation is completed we'll write to you to confirm the outcome and explain the action you will need to take.

What happens if I jointly own my property?

If you and someone else (who isn't on the IVA) jointly own your property we'll also write to them to make them aware of the review. We'll provide them with a copy of the property terms from your IVA proposal and explain that as joint owner they need to agree to any funds being released from the property.

The letter also explains that only your share of any equity will be considered when working out if a remortgage is needed.

What happens if there's equity in my property?

The amount of equity that can be released from your property will decide whether or not you need to remortgage:

If your share of the available equity is under £5,000

No further action is needed as you have fully complied with the terms of your IVA. This means you won't need to remortgage your property.

Your IVA will continue, based on the agreed number of payments stated in your proposal.

If your share of the available equity is over £5,000

You'll need to apply for a remortgage. To do this you can go to a mortgage provider of your choice.

The letter from us will explain that you'll need to keep us informed throughout the remortgage process. If your mortgage lender is willing to lend you more money you'll need to provide confirmation in writing as to how much this will be.

If you’re unable to remortgage you need to send written confirmation to us and we will then explain the other options available.

What happens if my remortgage isn't accepted?

If you can't remortgage, the terms of your IVA say that we can accept either:

  • A third party paying a lump sum to at least 85% of the value of your interest in the property; or
  • 12 extra monthly payments where the total being paid is no more than 85% of your interest in the property.

We'll write to you telling you the value of your share of the available equity. You will then need to tell us whether there is a third party willing to offer a lump sum or whether you would prefer to make 12 additional payments to your IVA.

If your re-mortgage application is accepted

Please contact us to discuss how the funds should be paid in.

Back to your IVA page


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Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

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