Yes, you can usually get an IVA if you own your home — and for many homeowners, that's one of its biggest attractions. An IVA is often chosen specifically because it's designed to let you keep your house while dealing with unaffordable unsecured debt, rather than putting your property at immediate risk the way some other routes might.
Owning a home does add one extra element compared with a tenant's IVA: the equity in your property. This is handled in a structured, well-established way, and understanding it up front helps you decide whether an IVA is right for you.
The short answer
- Homeowners can usually get an IVA, and it's often used to help you keep your home.
- You keep paying your mortgage as normal — it isn't included in the IVA.
- Any equity in your home is assessed, typically towards the end of the arrangement.
- Around year 5, you may be asked to try to release some equity by remortgaging.
- An IVA affects your credit rating and usually runs for five to six years.
Your mortgage stays separate
A mortgage is a secured debt, tied to your property, so it doesn't go into your IVA. You carry on paying it as normal, and your mortgage payment is treated as an essential cost when your affordable IVA payment is worked out. The IVA deals with your unsecured debts — credit cards, loans, overdrafts and similar — which is why our overview of what debts can be included in an IVA is worth a read before you start.
How equity is handled
Equity is the difference between what your home is worth and what you still owe on the mortgage. Because an IVA is about giving creditors a fair return, they'll usually expect you to make a reasonable effort to put some of that equity towards your debts — but in a way that's carefully controlled so you can stay in your home.
The year-5 remortgage step
Towards the end of a typical arrangement, often around the fifth year, you may be asked to try to remortgage and release a share of your equity. This is a standard feature of most homeowner IVAs. There are important protections built in, and if you can't reasonably remortgage, the usual outcome is that your IVA is extended by a further period instead — commonly up to 12 months. Our guides on equity release in year 5 and remortgaging during an IVA explain exactly how this works and what happens if you can't raise the money.
What if you have little or no equity?
Not every homeowner is sitting on a large amount of equity. If your property is worth only a little more than your mortgage — or if you're in negative equity — there may be nothing to release, and the year-5 step often results in a modest extension to your payments instead. Your equity position is assessed based on a valuation at the time, so what looks likely at the start of your IVA may look different by year five. This is one of the details worth discussing before you commit, so you know what to expect.
Will I lose my house?
For most homeowners in an IVA, the answer is no — keeping your home is usually the whole point. As long as you keep up your mortgage payments and stick to the terms of the arrangement, an IVA is structured to protect your property. We've written a fuller answer in will I lose my house in an IVA?. This is one of the clearest differences from bankruptcy, where a home with significant equity can be at greater risk — our comparison of whether an IVA is better than bankruptcy looks at this in detail.
Is an IVA the right choice for a homeowner?
An IVA can be a strong option if you want to protect your home, have significant unsecured debt and a stable income with some spare money each month. But it isn't the only route, and how long an IVA lasts and how the equity step plays out are worth understanding first — see how long does an IVA last?. It's also sensible to think ahead to your mortgage: an IVA is recorded on your credit file, which can affect remortgaging while it runs, so planning around your fixed-rate deals is worth doing early. For free, impartial guidance you can also visit MoneyHelper.
How IVA Advice Online can help
If you're a homeowner weighing up your options, we'll explain exactly how an IVA would treat your property and your equity, so there are no surprises down the line. Our advice is free and confidential — get in touch to see where you stand.