For most homeowners, the biggest fear about an IVA is losing the family home. In most cases, that won't happen. An IVA is designed to deal with your unsecured debts while you keep your home, and since 2025 the rules have made that clearer.
Under the current IVA Protocol, which applies to new protocol IVAs from 1 July 2025, your family home doesn't form part of the IVA at all. There's no requirement to sell it and no requirement to remortgage. The equity in your home only affects how long your IVA lasts.
The short answer
- An IVA is designed to let you keep your home.
- Under the 2025 Protocol, your home isn't included and you won't be asked to remortgage.
- Equity of £10,000 or more usually means a six-year IVA instead of five.
- Your home could still be at risk if you fall behind on your mortgage, or if your IVA fails and leads to bankruptcy.
- In bankruptcy, your share of the equity can be used to repay creditors.
How your home is treated in an IVA
An IVA is a legally binding agreement with your unsecured creditors. Once it's approved, those creditors can't take court action against you for the debts included, such as applying for a charging order or forcing a sale. You make one affordable monthly payment, and at the end of the term any remaining qualifying unsecured debt is written off.
Under the 2025 Protocol, your home is treated separately. Your insolvency practitioner works out your share of the equity at the start, using 85% of the property's value minus your mortgage and secured loans. If your share is under £10,000, your IVA usually lasts five years. If it's £10,000 or more, it usually lasts six years. That extra year of payments replaces the old remortgage step. See IVAs for homeowners for a worked example.
When your home could still be at risk
An IVA protects your home from the creditors included in it, but there are situations where the property could still be at risk:
- Mortgage or secured loan arrears. Your mortgage stays outside the IVA, so your lender can still take action if you fall behind. Keeping up your mortgage is a priority, and it's built into your IVA budget as an essential cost.
- Your IVA fails. If you stop making payments or don't keep to the terms, the IVA can fail. Creditors can chase you again, and your supervisor or a creditor may petition for your bankruptcy. Read what happens if my IVA fails?
- Debts outside the IVA. Any debt that isn't included, such as a secured loan, is unaffected by the IVA and can still be enforced in the normal way.
If your circumstances change, payments can often be reduced or paused. Speaking to your insolvency practitioner early is the best way to protect your home. See what to do if you can't pay your IVA.
Check which debt solutions you could qualify for. It won’t affect your credit score.
How this compares with bankruptcy
The difference for homeowners is significant. In bankruptcy, your share of the equity in your home becomes available to your creditors. The trustee may ask you to buy out that share, perhaps with help from family, or the property may have to be sold. In an IVA, your home is designed to stay with you, and equity only affects the length of the arrangement. Compare the two in is an IVA better than bankruptcy?
If your IVA started before July 2025
IVAs set up under earlier versions of the Protocol often include an equity release clause. This usually asks you to try to remortgage towards the end of your IVA, typically in year five, to release some of your equity for creditors. If you can't remortgage, the IVA is usually extended by up to 12 months instead. You won't lose your house because you can't get a remortgage. Our guide to equity release in year 5 explains these older rules in full.
Joint owners and partners
If you own your home with a partner or someone else, only your share of the equity is considered in your IVA. Your partner isn't part of your IVA and isn't responsible for debts in your sole name. If you both have debts, you may each be able to have your own IVA. See joint IVAs for couples.
Common questions
Will I lose my house if I get an IVA?
In most cases, no. An IVA is designed to let you keep your home. Under the 2025 IVA Protocol, your family home doesn't form part of the IVA, so you won't be asked to sell it or remortgage. You do need to keep paying your mortgage as normal.
Can creditors force the sale of my house in an IVA?
Creditors included in your IVA can't take court action against you for those debts while it's running, including applying for a charging order or an order for sale. That protection lasts as long as you keep to the terms of your IVA.
What happens to my house if my IVA fails?
If your IVA fails, creditors can chase you again, and your supervisor or a creditor may petition for your bankruptcy. In bankruptcy, your share of the equity in your home can be used to repay creditors, which could mean selling it. That's why it's important to speak to your insolvency practitioner early if you're struggling.
Is my house safer in an IVA or bankruptcy?
An IVA generally gives homeowners more protection. In bankruptcy, your share of the equity can be claimed for creditors, and the house may have to be sold. An IVA is designed to let you keep your home, with the amount of equity affecting how long it lasts rather than whether you keep the property.
What if my partner owns the house with me?
Only your share of the equity is considered in your IVA. Your partner's share isn't affected, and they aren't responsible for debts that are in your sole name. If you have joint debts, it's worth both of you getting advice.
Will I lose my house if I miss mortgage payments during an IVA?
Your mortgage stays outside the IVA, so your lender can still take action if you fall behind. Keeping up your mortgage is a priority, and it's included in your IVA budget as an essential cost. If you're struggling, contact your lender and your insolvency practitioner straight away.
How IVA Advice Online can help
If you own your home and you're worried about your debts, we'll explain exactly how your property would be treated and which debt solutions you could qualify for. To talk through your options, get in touch.