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How an IVA affects me

IVA and my mortgage

While you're on an individual voluntary arrangement (IVA) it’s unlikely that you’ll get a new mortgage.

If you’re on an IVA, you can’t take out any credit of more than £500 without getting written approval from the Supervisor of your IVA first. Also, it may be extremely difficult to a find a lender who is willing to give you a new mortgage while you’re on an IVA.

We recommend you think carefully before considering an option like a mortgage, and discuss this with your insolvency practitioner.

An IVA should be carefully considered because of the possible consequences for your personal, professional and financial life. There are many risks to consider with an IVA.

Is an IVA right for you?

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Will I need to remortgage on an IVA?

Under the terms of your IVA, if you have equity in your property, you may be required to remortgage six months before the end of the arrangement to pay a lump sum into your IVA.

Remortgaging to release equity to pay into your IVA is not restricted in the same way as taking out a new mortgage would be. However, it may still be difficult to find a mortgage company who will lend to you while you’re in an IVA.

If you can’t remortgage, or if it would too expensive to do this, you may need to make extra monthly payments into your IVA, increasing the term by 12 months. You can also get a third party to provide money for this.

Contact us for free, impartial and confidential debt help for more information about IVAs and for help on any other debt issue. You can speak confidentially to one of our debt advisors on our Helpline (free from all landlines and mobiles).

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

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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