My home in an IVA
You do not have to sell your home unless you want to.
Your IVA may be agreed at six years instead of five years if there is equity in your home.
Are you currently thinking of remortgaging?
If you have an IVA, lenders may not offer you the cheapest rate or be willing to provide you with a mortgage.
The advisor will talk with you about this.
If there is more than £10,000 equity available based on 85% of the current value, your IVA may last for six years.
To work this out, we will find the value of your house. If, for example, the value of your house is £100,000, we will use 85% of this amount.
85% of £100,000 is £85,000.
We would then work out how much of the £85,000 you would have left after paying back the rest of your mortgage or any other costs. For example, if you had £60,000 left to pay on your mortgage, you would have £25,000 equity left.
As this is higher than £10,000 left, your IVA would last for six years.
If there is less than £10,000 equity available based on 85% of the current value, your IVA will last for five years.
Use our online debt advice tool to find out more about IVAs.
StepChange Voluntary Arrangements is a registered trading name of Consumer Credit Counselling Service Voluntary Arrangements Limited, a wholly owned subsidiary of StepChange Debt Charity.