What are the implications of an IVA remortgage?

Following the introduction of the 2025 IVA Protocol changes, it is no longer a requirement of an Individual Voluntary Arrangement to release equity at the end of the IVA period.

If you do own your own home, you would be required to make an additional twelve months of payments if you have more than £10,000 of equity in your home. Equity is calculated by subtracting the amount you owe your mortgage company from 85% of the market value of your home.

For example, if your home is worth £100,000, the asset value used in the calculation is £85,000 (85% of £100,000). If your outstanding mortgage is £75,000, then your equity would be £10,000 (property value of £85,000 minus mortgage of £75,000).

You can read more about IVAs and whether they are suitable for your situation in our IVA section.

Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt, including IVAs. If you need to talk to someone about debt, please call the charity’s helpline on 0800 043 40 50 to speak to an adviser.

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