IVA and Your Mortgage: Everything You Need to Know

Can I Keep My Mortgage During an IVA?

Yes. Your mortgage is a secured debt and is not included in an IVA. You continue making your monthly mortgage payments as a priority essential expense, alongside rent, utilities, and food. The IVA payment sits on top of these necessities.

Will My Mortgage Lender Find Out?

Your IVA is recorded on the Individual Insolvency Register and on your credit file with all three major UK credit reference agencies. Most mortgage lenders carry out periodic reviews and will likely discover the IVA. However, a standard residential lender cannot demand early repayment or change your rate solely because of the IVA, provided you maintain payments.

Some mortgage agreements contain insolvency clauses - it's worth reviewing your terms and raising any concerns with your IP.

Getting a New Mortgage During an IVA

It is extremely difficult to obtain a new mortgage while your IVA is active. High street lenders will almost always decline. Some specialist adverse credit lenders may consider applications, but rates are high and deposits substantial. You also need your IP's consent before taking on any new secured borrowing.

• Mainstream lenders will decline IVA mortgage applications outright
• Specialist lenders may consider - but at significantly higher rates
• A large deposit (25%+) will usually be required
• Your IP must give consent before new secured borrowing
• New credit without permission may breach your IVA terms

Getting a Mortgage After an IVA

After your IVA completes, getting a mortgage is achievable with patience and planning. The IVA remains on your credit file for 6 years from its start date - not from completion.

1. 1Confirm IVA is removed from the Individual Insolvency Register after completion
2. 2Check all three credit files (Experian, Equifax, TransUnion) for accuracy - dispute any errors
3. 3Register on the electoral roll at your current address if not already
4. 4Build credit score: use a credit builder card responsibly, paying in full each month
5. 5Save the largest deposit possible - aim for 15-25% minimum
6. 6Use a specialist mortgage broker experienced in adverse credit
7. 7Be honest with lenders about your IVA history - omission can cause greater problems later

The Equity Clause and Remortgaging

In year 5 of your IVA, you will be asked to attempt to remortgage and release equity. If you cannot - due to credit rating, lender criteria, or cost - your IVA simply extends by 12 months. Your home is never at risk from this process.

This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.