IVA with Mortgage: Keep Your Home Guide 2026
Worried about losing your home? An IVA is designed to help homeowners keep their property while becoming debt free. Learn how mortgages and IVAs work together.
Quick mortgage IVA facts
You keep your home
IVAs are designed for homeowners to keep property
Mortgage excluded
Your mortgage continues outside the IVA
Equity handled fairly
Options available if you have property equity
Clear guidance
Expert advice on IVAs for homeowners
Understanding IVAs and mortgages
How an IVA works when you have a mortgage and own your home.
Keep your home
Your mortgage continues as normal. An IVA helps you keep your property while dealing with unsecured debts.
Mortgage not included
Your mortgage is secured debt and stays outside the IVA. Only unsecured debts are included in the arrangement.
Equity considerations
If you have significant equity, you may need to remortgage in year 5 or extend your IVA by 12 months.
Remortgaging challenges
Remortgaging during an IVA is difficult but possible with specialist lenders. Your IP must approve any remortgage.
How equity affects your IVA
What happens with property equity in an IVA depends on how much you have.
Low or no equity
If your property has little or no equity (less than £5,000), you typically will not need to remortgage or extend your IVA.
Typical outcome:
Standard 60 month IVA
Moderate equity (£5,000-£50,000)
You may be asked to remortgage in year 5 to release equity towards your debts. If you cannot remortgage, add 12 months to your IVA instead.
Typical outcome:
Remortgage or extend to 72 months
Significant equity (£50,000+)
You will likely need to remortgage to release equity. The amount depends on affordability and your remaining debt. If remortgaging fails, extend your IVA.
Typical outcome:
Remortgage in year 5 or 72 month IVA
Remortgaging With an IVA
Can you remortgage while in an IVA? Here is everything you need to know about remortgaging during and after your IVA.
Can You Remortgage During an IVA?
Yes, you can remortgage while in an IVA, but only with your insolvency practitioner's permission and under specific circumstances:
- To release equity to pay off your IVA early
- To secure a better interest rate and reduce monthly payments
- When your current mortgage deal is ending
- You need IP approval before approaching lenders
Most remortgaging during an IVA happens in year 5 or 6 when you have built up equity and want to release it to complete your IVA early.
Releasing Equity to Pay Off IVA
In your final IVA year (usually year 5 or 6), your IP will assess if you have equity in your home. If you have more than £5,000 equity, you may need to:
- •Remortgage to release equity (up to 85% LTV)
- •Use released equity to pay creditors through your IVA
- •Extend your IVA by 12 months if you cannot remortgage
Example:
Home value: £200,000. Mortgage: £150,000. Equity: £50,000. You could remortgage up to £170,000 (85% LTV), releasing £20,000 to pay into your IVA. Check your IVA eligibility today.
Mortgage Lenders That Accept IVAs
Specialist mortgage lenders and brokers can help homeowners in IVAs:
- •Specialist IVA mortgage brokers know which lenders accept IVA cases
- •Expect higher interest rates (typically 4-6% compared to 2-3% for standard mortgages)
- •You will need a good payment record in your IVA
- •IP must provide a letter confirming your IVA status and equity position
Getting a Mortgage After IVA Completion
After completing your IVA, you can get a mortgage, but timing and preparation matter:
Year 1 After IVA:
Very limited options. Specialist lenders only. High rates (5-7%). Large deposit needed (25-30%).
Year 2-3 After IVA:
More lenders available. Improving rates (4-5%). Deposit requirements reduce to 15-20%.
Year 3+ After IVA:
Near-normal mortgage options. Competitive rates if you rebuilt credit. Standard deposit requirements (10-15%).
Year 6 After IVA:
IVA removed from credit file. Full access to standard mortgage market. Normal rates and terms available.
Joint Mortgages and IVAs
If you have a joint mortgage with a partner or spouse, an IVA affects things differently:
If Only You Get an IVA:
- • Your partner is not affected by your IVA
- • Mortgage payments continue as normal
- • Only your share of equity is considered (usually 50%)
- • Your partner's credit score is not impacted
- • Remortgaging may be harder (needs both incomes)
If You Both Get an IVA:
- • You can apply for a joint IVA together
- • Mortgage payments included in IVA assessment
- • Full property equity is considered (100%)
- • Remortgaging to release equity may be required
- • Both credit scores affected for 6 years
What Happens to Your Mortgage If Your IVA Fails?
If your IVA fails, your mortgage is usually not at immediate risk, but you need to act quickly.
Mortgage Payments Protected
Your mortgage lender is a secured creditor. As long as you keep paying your mortgage on time, your home is not at risk from IVA failure. Mortgage payments are always protected as an essential expense.
Unsecured Creditors Restart
When your IVA fails, your unsecured creditors (credit cards, loans, etc.) can contact you again and may pursue legal action. This does not affect your mortgage unless you stop paying it.
Next Steps After Failure
Consider a Debt Management Plan (DMP) to keep paying your unsecured debts affordably while protecting your mortgage. A DMP is more flexible than an IVA and better for homeowners who had IVA issues.
Homeowners who got IVAs
"I was worried an IVA would mean losing my house. My advisor explained I could keep my mortgage running as normal. Five years later, I am debt free and still in my home."
Andrew M.
Birmingham
"Having a mortgage did not stop me getting an IVA. My mortgage was excluded from the arrangement and I kept up payments as usual. The IVA dealt with my credit cards and loans."
Claire H.
Leeds
"I had equity in my home and was worried about losing it. In year 5 I remortgaged and released some equity, but kept my home. Worth it for the debt write-off I got."
David R.
Portsmouth
IVA and mortgage FAQs
Can you have an IVA with a mortgage?
Yes, you can have an IVA with a mortgage. Your mortgage is a secured debt and continues as normal outside the IVA. You keep making mortgage payments as usual. Only your unsecured debts (credit cards, loans, overdrafts) are included in the IVA.
Will an IVA affect my mortgage?
Your current mortgage payments continue as normal and are not affected by an IVA. However, an IVA will appear on your credit file for 6 years, which may make remortgaging or getting a new mortgage more difficult during this period. After completion, you can rebuild your credit.
Will I lose my house if I enter an IVA?
No, an IVA is designed to help you keep your home. You continue paying your mortgage as normal. However, if you own your property with significant equity, you may need to remortgage in the final year to release some equity. If this is not possible, your IVA may be extended by 12 months instead.
Can I get a mortgage with an IVA in place?
Getting a new mortgage or remortgaging with an active IVA is very difficult. Most mainstream lenders will not approve mortgages while you have an IVA. Specialist lenders may consider it, but rates will be higher. It is usually better to wait until your IVA is completed.
What mortgage lenders accept IVA?
Specialist mortgage lenders may consider applications from people with an active or recently completed IVA. These include some second-tier lenders and specialist brokers. However, you will likely face higher interest rates and need a larger deposit. Mainstream lenders typically require the IVA to be complete and removed from your credit file.
Can I remortgage with an IVA?
Remortgaging during an IVA is challenging but not impossible. You will need permission from your Insolvency Practitioner. Specialist lenders may consider it, especially in the final year if you need to release equity. However, options are limited and interest rates will be higher than standard mortgages.
Will IVA affect my mortgage application after 6 years?
After 6 years, your IVA is removed from your credit file. Once removed, it should not directly affect new mortgage applications. However, lenders may still ask if you have ever had an IVA. Be honest, as lying on a mortgage application is fraud. Many lenders will still consider your application if the IVA is historic and your credit has improved.
Can you get a joint mortgage with an IVA?
Getting a joint mortgage while one person has an IVA is very difficult. The person with the IVA will struggle to pass affordability and credit checks. Some specialist lenders may consider it if the other applicant has excellent credit and sufficient income. It is usually better to apply after the IVA is completed.
How hard is it to get a mortgage after an IVA?
Getting a mortgage after an IVA is challenging but possible. In year 1-2 after completion, you will need specialist lenders with higher rates (5-7%) and larger deposits (25-30%). By year 3-5, options improve significantly with near-normal rates if you have rebuilt your credit. After 6 years, the IVA is removed from your credit file and you have full access to standard mortgage products at competitive rates.
Can I have an IVA with a mortgage?
Yes, you can have an IVA if you have a mortgage. Having a mortgage does not prevent you from getting an IVA. Your mortgage payments are protected as an essential expense and continue as normal. An IVA only includes your unsecured debts like credit cards, loans, and overdrafts. Many IVA clients are homeowners.
Do I have to declare IVA on a mortgage application after 6 years?
After 6 years, your IVA is automatically removed from your credit file and no longer appears on credit reports. However, mortgage lenders may still ask if you have ever had an IVA on their application forms. You must answer honestly as providing false information on a mortgage application is fraud. Most lenders will still consider your application if the IVA is historic and your credit has been rebuilt.
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