Can I keep my home with an IVA?
Quick Answer: In most cases, yes. Unlike bankruptcy, an IVA generally allows you to keep your home.
One of the biggest advantages of an IVA over bankruptcy is that it usually allows you to keep your home. Your mortgage is a secured debt and is not included in the IVA arrangement.
However, your home equity may play a role in your IVA. In the final year of a standard 5-year IVA, you may be asked to remortgage your property to release some equity towards your IVA.
The amount of equity you'd need to release varies, but it's typically capped at a reasonable level. Your IP will discuss this with you from the outset so there are no surprises.
If remortgaging isn't possible - for example, because you can't get a mortgage due to your IVA status, or the costs would be disproportionate - the IVA term is usually extended by 12 months instead.
It's also worth noting that while you keep your home, your IVA proposal must account for your mortgage payments as an essential living cost.
* This information is for general guidance only and does not constitute financial advice.