Your House During an IVA, Question by Question
What stays the same, and the homeowner-specific parts to understand.
What happens to my house during an IVA?
Day to day, very little changes. You continue living in your home and paying your mortgage as usual. The IVA deals with your unsecured debts in the background, while your home and mortgage carry on as normal. The one homeowner-specific feature is how your equity is assessed, which mainly affects the length of the arrangement.
Do I keep paying my mortgage?
Yes, exactly as before. Your mortgage is secured against your home, so it is not included in the IVA and you keep paying it directly to your lender. Your monthly mortgage payment is treated as an essential cost when your IVA budget is worked out, so it is accounted for before your IVA payment is set.
Is my mortgage included in the IVA?
No. Only unsecured debts go into an IVA, and a mortgage is a secured debt. The same applies to secured loans and hire purchase tied to an asset. These stay outside the arrangement and continue as normal. It is your credit cards, overdrafts, personal loans and similar that the IVA actually deals with.
What happens to my equity?
It is assessed, and reflected in your IVA's length. Under the current 2025 rules, if your share of the equity is below a set threshold your IVA runs five years; if it is above, it runs six. The extra year of payments stands in place of releasing any equity. You can read the detail on our equity in an IVA guide.
Will I have to remortgage?
If you start an IVA now, no. Under the 2025 rules, there is no longer any requirement to remortgage your home. Older IVAs, set up before July 2025, may still include a remortgage step in the final year, but even then, if you cannot remortgage on reasonable terms, the IVA is simply extended instead. Either way, you keep your home.
What if I fall behind on the mortgage?
Your lender keeps its usual powers. Because the mortgage is secured, falling into arrears can lead to action, including repossession, even during an IVA, and arrears generally cannot be added to the arrangement. Often, though, clearing your unsecured debts frees up money to keep the mortgage on track. Tell your adviser about any arrears so they can be planned for.
Can I sell or move during the IVA?
Yes, with your supervisor's agreement. You are not frozen in place, you can sell or move during an IVA, but because your home and its equity are relevant to the arrangement, you need to involve your supervisor first. We cover this on our moving house in an IVA guide.
What happens to my house at the end?
Nothing changes, it stays yours. When your IVA completes, your home remains your own, just as it was throughout. You will have kept up your mortgage, dealt with any equity through the length of the arrangement, and cleared your unsecured debts. From there, you carry on as a normal homeowner, with the IVA behind you.
Should I get advice?
Yes. Every homeowner's situation is a little different, depending on equity, mortgage and whether you own jointly. A free, impartial adviser can explain exactly what an IVA would mean for your home. Free services like StepChange and MoneyHelper can walk you through it with no cost and no obligation.
