If You Can’t Remortgage, Question by Question
Why this is far less of a problem than homeowners fear.
What happens if I can't remortgage?
In short, your IVA still completes and you keep your home. For new IVAs you are not asked to remortgage at all, so the question does not arise. For older IVAs that do ask you to try, being unable to remortgage is expected, and the arrangement simply continues with a twelve-month extension instead. Either way, not being able to remortgage does not put your home or your IVA in jeopardy.
Isn't it a problem if I'm refused?
No, it is the normal outcome. Most people in an IVA cannot remortgage, because the arrangement marks their credit file, and the rules are designed around that reality. On older IVAs, a refusal is exactly what the twelve-month extension is there for. So a 'no' from lenders is not a failure, it is simply the path most homeowners take.
What is the 12-month extension?
It is an extra year of payments in place of releasing equity. On older IVAs, where you cannot remortgage, your supervisor extends the IVA by twelve months, so you pay for six years rather than five. Under the new 2025 rules, this extension is built in from the start for those with £10,000 or more of equity, so there is no remortgage attempt at all.
Is the extension cheaper than remortgaging?
Usually, yes, by a wide margin. Remortgaging in an IVA, where it is even possible, often means a high interest rate over many years, and a secured loan can be worse. Twelve extra monthly payments at your existing affordable level is typically far cheaper overall, and it does not lock new long-term borrowing against your home. For most people, the extension is the better outcome.
Could I be told to take a secured loan instead?
You can refuse. A standard IVA does not require a secured loan, and under the 2025 rules the question does not even arise. On older IVAs, some firms suggested high-interest secured loans where a remortgage failed, but you could object, on the grounds of affordability and that it leaves you in long-term debt, and the twelve-month extension applied instead. Never feel forced into expensive secured borrowing.
Will I lose my home if I can't remortgage?
No. An IVA cannot force the sale of your home, and being unable to remortgage changes nothing about that. The equity is dealt with through the length of your IVA, not by selling up. As long as you keep paying your mortgage and your IVA contributions, your home remains yours throughout and after the arrangement.
What if my IVA is an older one?
Then check which rules apply. IVAs approved before July 2025 may still have the remortgage clause, with the review usually around month 54. If that is you, and you cannot remortgage, the twelve-month extension applies. It is worth reading your own IVA paperwork or asking your supervisor, so you know exactly what is expected and when.
Should I get advice?
Yes, if you are unsure where you stand. A free, impartial adviser, alongside your supervisor, can confirm whether your IVA involves any remortgage attempt at all, and reassure you about what happens if you cannot. For homeowners especially, getting clear, current advice removes a lot of unnecessary worry. It costs nothing and there is no obligation.
