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Managing an IVA

Individual voluntary arrangement. IVAs and remortgaging

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

All the details about what will happen to your property should have been written into your initial IVA proposal by your IVA provider. They should also contact you before any scheduled remortgage so you know what you need to do. 

IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity.

Is an IVA right for you?

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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 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'll 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's 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 usually contains your current mortgage balance, any outstanding interest, your daily rate of interest, and any redemption or closure fees that may apply.

If they’re unable to get the statement, they may contact you to ask your mortgage lender to provide the redemption statement.

Valuing your property

The valuation of your property is completed online. However, in some cases your IVA provider may need to instruct 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 then taking away the amount left on your mortgage from this figure. The amount that’s left over is the equity that's available for your IVA.

Once this calculation is completed, your IVA provider should write to you to confirm the outcome and explain the action you will need to take.

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 and someone else (who isn't on the IVA) jointly own your property, your IVA provider will also write to them to make them aware of the review. They’ll also provide the person 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.

If you do need to remortgage your property, only your share of the equity will be considered.

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 your IVA provider should explain that you'll need to keep them 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 your IVA provider. They should then explain the other options available to you.

What happens if my remortgage isn't accepted?

If you can't remortgage, there may still be options available for paying off your IVA. You can discuss these options further 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


  • 12 extra monthly payments where the total being paid is no more than 85% of your interest in the property

Applying for an IVA?

Before you consider an IVA you should use our online debt advice tool. This will give you impartial and confidential advice to find out whether an IVA is the best debt solution for you.

If you’d prefer to talk to us, call our advice team (free from all landlines and mobiles) and speak to one of our expert advisors.

IVAs are available in England, Wales and Northern Ireland. They aren't available if you live in Scotland. In Scotland, a protected trust deed is a similar solution, but has different benefits, risks and fees associated with it.

There are no up-front fees, and we won’t charge you for debt advice. Fees are detailed in your IVA proposal, which an IP will assist in drafting. Any fees have to be approved by creditors. Your IP will explain what fees you need to pay for your IVA.

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