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Managing an IVA

Individual voluntary arrangement. IVAs and remortgaging

If you own a property there will be restrictions on it for the duration of your IVA. You will not be able to remortgage or sell it without your Supervisor’s permission.

Details about what will happen to your property should have been written into your IVA proposal by your IVA provider. They should contact you before any planned remortgage to let you you know what you need to do.

Not sure what some terms mean? Our mortgage jargon buster can help.

IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity. In Scotland, a protected trust deed is a similar solution. This has different benefits, risks and fees.

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Dealing with your property

How your property is to be dealt with is written into your IVA proposal. A copy of the property terms will be sent to you when your IVA provider starts the review. This is usually sent six months before your IVA is due to finish.

During your review, your IVA provider should:


  • Ask your secured lenders for an up-to-date redemption statement
    • This shows how much it will cost to pay off your mortgage at this point
  • Complete a valuation of your property
  • Send you a copy of the property sections from your IVA proposal

Here is more detail about each of these stages:

Redemption statement

Your IVA provider will write to your secured lenders to get a recent redemption statement.

This contains:


  • Your current mortgage balance
  • Any outstanding interest
  • Your daily rate of interest
  • Any redemption or closure fees that may apply

If they cannot get the statement, they may contact you to ask your mortgage lender to provide this.

Valuing your property

The valuation of your property is done online.

In some cases, your IVA provider may ask a local surveyor to visit your property.

Remortgage 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
  • Taking away the amount left on your mortgage from this figure

The amount left over is the equity available for your IVA.

Once this is worked out, your IVA provider will write to you to:


  • Confirm the outcome
  • Explain what you need to do next

Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.

What happens if I jointly own my property?

If you own your property with someone not on the IVA, your provider will:


  • Write to them to make them aware of the review
  • Provide the person with a copy of the property terms from your IVA proposal
  • Tell them that as joint owner they need to agree to any funds being released from the property

If you must remortgage, only your share of the equity will be considered.

What happens if there is equity in my property?

The amount of equity that can be released from your property will decide if you need to remortgage.

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


  • No further action is needed as you have met the terms of your IVA
  • You will not need to remortgage your property
  • Your IVA continues, based on the agreed number of payments stated in your proposal

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


  • You will need to apply for a remortgage
  • To do this you can go to a mortgage provider of your choice

The letter from your IVA provider will tell you to keep them informed through the remortgage process.

If your mortgage lender is willing to lend you more money, they need to confirm the amount in writing.

If you cannot remortgage you need to send written confirmation to your IVA provider. They should then explain the other options available to you.

What happens if my remortgage is not accepted?

If you cannot remortgage, there may be other options for paying off your IVA. You can discuss this with your IVA provider. Options might include:


  • 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 is no more than 85% of your interest in the property

Applying for an IVA?

Use our online debt advice tool first. This will:


  • Give you free, impartial debt advice
  • Help you find out if an IVA is the best solution for you

StepChange Voluntary Arrangements is a registered trading name of Consumer Credit Counselling Service Voluntary Arrangements Limited, a wholly owned subsidiary of StepChange Debt Charity.