What happens to my house on an IVA?
Published Tue, Sep 27, 2016 Updated Tue, Feb 16, 2021
An IVA is usually seen as the last resort before bankruptcy and it comes with a lot of big changes and upheavals – one of which is your home. A mortgage is a legally binding agreement between you and your creditors, so it can affect your home. Here are a few ways an IVA can affect your home.
Will I have to sell my home on an IVA?
In short, it is very rare that you’ll have to sell your home if you have an IVA. But if you own multiple properties, such as a holiday home, caravan or more than one vehicle you may be asked to sell them as assets to cover part of your debts.
Will I have to remortgage my home on an IVA?
It’s likely that you’ll have to remortgage your home six months before your IVA finishes (depending on the amount of equity on the property). As a general rule, you won’t be expected to remortgage more than 85% of your property and every step will be taken by your Insolvency Practitioner (IP) to ensure the mortgage is affordable for you.
What if I move house on an IVA?
Getting a new mortgage on an IVA is very unlikely as it’s essentially a form of credit. However, if you do manage to move house on an IVA then any profit you make from selling your house will need to paid towards the IVA.