IVA With a Buy-to-Let or Second Property

Can I Get an IVA if I Own a Buy-to-Let Property?

Possibly. Owning a second property doesn’t rule you out, but creditors will usually expect its equity and rental income to be taken into account.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

The protections for your family home under the IVA Protocol don’t apply in the same way to other property. If you own a buy-to-let or second home, it’s treated as an asset in your IVA.

The short answer

A buy-to-let or second home is an asset creditors will look at.
Creditors may expect the property to be sold or remortgaged to release equity.
Rental income counts as income after allowable costs.
These IVAs often use bespoke terms rather than the standard Protocol.
Get advice early. Other options may suit you better.

How is a second property treated?

Your insolvency practitioner will value the property and work out the equity after any mortgage. Creditors usually expect that equity to be used to repay them, either through a sale or a remortgage, during or at the end of the IVA.

What about rental income?

Rent you receive counts as income. Mortgage payments, letting fees, insurance and repairs are usually allowed against it. Any profit increases what you can afford to pay into your IVA.

Is an IVA the right option?

If you have significant equity, selling the property and paying creditors directly, or a full and final settlement, may be cheaper than an IVA. Talk through all options before deciding.

Common questions

Will I have to sell my buy-to-let in an IVA?

Possibly. Creditors often expect equity in a second property to be released, by sale or remortgage.

Does the IVA Protocol protect my buy-to-let?

No. The Protocol’s treatment of your home applies to the property you live in, not investment property.

Can I keep a property I rent out if it has no equity?

If there’s little or no equity, creditors may be less interested in a sale, but rental profit will still count as income.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.