Under the current IVA Protocol, you won’t be asked to remortgage. But you may still want to switch deal or remortgage while your IVA is running. Here’s how it works.
May not be suitable in all circumstances. Fees apply, read more. Your credit rating may be affected, read more.
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.
If you own your home and you're in an IVA, or thinking about one, remortgaging can come up in two different ways. You might be asked to remortgage as part of your IVA terms, or you might want to remortgage, for example because your fixed rate is ending.
The rules changed in 2025. Under the current IVA Protocol, which applies to new protocol IVAs from 1 July 2025, you won't be asked to remortgage at all. Here's how remortgaging works in both situations.
Under the 2025 Protocol: no. Your family home doesn't form part of the IVA. Instead, the equity in your home decides how long your IVA lasts. If your share of the equity is under £10,000, it usually lasts five years. If it's £10,000 or more, it usually lasts six years. Equity is worked out as 85% of your home's value, minus your mortgage and secured loans. See IVAs for homeowners for a worked example.
Under older IVA terms: possibly. Many IVAs that started before July 2025 include an equity release clause. Towards the end of the IVA, usually in year five, you're asked to try to remortgage and release equity above 85% of your home's value. If the amount would be under £5,000, you're not normally asked to. If you can't remortgage, the IVA is usually extended by up to 12 months instead. Our guide to equity release in year 5 explains the limits that apply.
You might want to remortgage during your IVA for your own reasons, most often because a fixed-rate deal is coming to an end and you don't want to move onto your lender's standard variable rate.
A product transfer means moving to a new rate with the lender you already have. Because you're not usually borrowing more, many lenders allow this without a full new application, and it's often possible during an IVA. Let your insolvency practitioner know, particularly if your monthly payment will change, as this affects your IVA budget.
Remortgaging with a new lender, or borrowing more against your home, is harder. You'll need your insolvency practitioner's agreement before taking on new borrowing over £500, and only a small number of specialist lenders consider applicants in an active IVA. Rates and fees may be higher than you'd get with a clean credit file. A broker who specialises in adverse credit can help you see what's realistic.
Check which debt solutions you could qualify for. It won’t affect your credit score.
If your equity has grown, remortgaging can sometimes be used to raise a lump sum and end your IVA early through a full and final settlement. Your insolvency practitioner puts the offer to your creditors, who vote on whether to accept it. You'll need their agreement before taking on the new borrowing. See how to exit an IVA early.
Once your IVA has completed, more lenders will consider you, and the choice improves as time passes. Your IVA stays on your credit file for six years from the start date. Our guide to getting a mortgage after an IVA explains what lenders look for, and rebuilding your credit score covers practical steps.
It's possible, but you'll need your insolvency practitioner's agreement before taking on any new borrowing, and fewer lenders will consider you while the IVA is running. Switching to a new deal with your existing lender, known as a product transfer, is often the simplest option.
Not under the 2025 IVA Protocol, which applies to new protocol IVAs from 1 July 2025. Many IVAs that started earlier include a clause asking you to try to remortgage towards the end of the term to release equity, so check your own terms.
If your IVA includes an equity release clause and you can't remortgage, it's usually extended by up to 12 months of payments instead. You won't lose your home because you can't get a remortgage.
Usually, yes. A product transfer with your existing lender doesn't normally involve new borrowing, so it's often possible during an IVA. Tell your insolvency practitioner, especially if your monthly mortgage payment will change.
Sometimes. If you can raise a lump sum, for example by remortgaging after equity has grown, your insolvency practitioner can put a full and final settlement offer to your creditors. They must vote to accept it, and you'll need permission before taking on new borrowing.
It might. Lenders who accept applicants in an IVA often charge higher rates, and there may be arrangement fees. A specialist broker can help you compare what's available.
See which debt solutions you could qualify for.
