Your home is not treated the same way in every IVA. The answer depends on the version of the protocol used and, most importantly, the terms creditors approved in your signed proposal.
For a new IVA that follows the 2025 IVA Protocol, your interest in the family home is excluded rather than released. If your individual beneficial interest is £10,000 or more, the arrangement is normally proposed for 72 months instead of 60. The old description of everybody trying to remortgage near the end is not the current protocol rule.
This guide explains the family-home and equity clauses. If your immediate question is whether you can afford an existing mortgage, deal with arrears or apply for an IVA as a homeowner, read IVA with a mortgage.
The 2025 IVA Protocol rule for your family home #
The 2025 IVA Protocol took effect for new protocol IVAs on 1 July 2025. Paragraphs 53 to 63 set out the property approach.
Under those terms:
- the proposal must not require you to realise your interest in the family home;
- the property is valued before the proposal using a reasonable estimate verified by the Insolvency Practitioner;
- there is no further family-home equity review once the protocol IVA is in force;
- an individual beneficial interest below £10,000 is excluded without the property threshold adding 12 months; and
- an individual beneficial interest of £10,000 or more normally leads to a 72-month proposal in place of an equity contribution.
This is not a promise that every homeowner can use a protocol IVA. Very high equity, multiple homes or buy-to-let property can make the standard protocol unsuitable.
Does the 2025 rule apply to your IVA? #
It applies only where the proposal follows the 2025 Protocol. The Protocol is a voluntary framework for straightforward consumer IVAs; an Insolvency Practitioner can propose a bespoke arrangement where it is not suitable.
Use this order when checking your position:
- Read the property section of the proposal creditors approved.
- Check whether it says the IVA follows the 2025 Protocol.
- Check the approval date and any creditor modifications.
- Ask your supervisor to explain any difference in writing.
An IVA approved before 1 July 2025 does not automatically acquire the new rules. A newer bespoke proposal can also contain different property terms. Your signed arrangement controls what you must do.
How the £10,000 beneficial-interest test works #
The 2025 Protocol does not calculate the test as 85% of your gross equity. It uses:
85% of the reasonable property value, minus mortgage and other secured borrowing, then your individual beneficial share.
Here is a simple example for a home owned equally by two people:
| Step | Example |
|---|---|
| Reasonable property value | £250,000 |
| 85% of property value | £212,500 |
| Less secured borrowing | £180,000 |
| Available equity under the Protocol | £32,500 |
| Your assumed half share | £16,250 |
In this example, the consumer’s individual beneficial interest is over £10,000. A protocol IVA would normally be proposed for 72 months, and the family home would still be excluded.
Joint ownership is not always a simple 50/50 split. The proposal should state the ownership position and how the individual share was calculated.
What each property position usually means #
| Position under the 2025 Protocol | Usual treatment |
|---|---|
| Individual beneficial interest below £10,000 | Family home excluded; the threshold does not itself add the extra 12 months |
| Individual beneficial interest of £10,000 or more | Family home excluded; IVA normally proposed for 72 months |
| Equity is very high compared with the debts | A protocol IVA may be unsuitable; bespoke advice or another solution may be needed |
| Second home or buy-to-let property | Not given the same standard family-home treatment; a bespoke proposal or another solution may be needed |
Creditors still vote on the proposal and can request modifications. Ask the Insolvency Practitioner to explain the final approved terms, not only the first draft.
Do you have to remortgage near the end? #
Not under the 2025 Protocol family-home terms. The value is checked before the proposal and there is no later equity review once the arrangement is in force.
You may still find pages describing a month-54 valuation, a remortgage or secured-loan attempt, and a 12-month extension if borrowing is unavailable. Those were features of older protocol options and may still matter if they appear in your existing or bespoke IVA.
Do not assume either version. Check the document you signed.
What changed from older IVA property terms? #
The official 2021 Protocol is now a reference copy and GOV.UK says it should not be used for new protocol cases after 30 June 2025. Depending on the option selected, older arrangements could:
- test equity against a £5,000 threshold;
- review the property near the end of the IVA;
- require an attempt to remortgage or obtain secured borrowing; or
- substitute up to 12 extra monthly payments where equity could not be released.
If your IVA uses those terms, the 2025 threshold and no-remortgage rule do not automatically replace them. Ask your supervisor what valuation is required, when it happens and what the fallback is.
Your mortgage still has to be paid #
A mortgage and most other loans secured on the home sit outside the IVA if you intend to keep the property. Your budget should allow for the mortgage, secured loans, service charges, buildings insurance and realistic repairs before calculating an affordable IVA payment.
The 2025 family-home exclusion does not stop a mortgage lender using its normal rights if secured payments are missed. Mortgage arrears need urgent, separate attention. See the homeowner IVA and mortgage guide before agreeing a payment that leaves housing costs short.
What if you sell the home during the IVA? #
Do not put the property on the market, transfer a share or agree how sale proceeds will be used without first checking the signed IVA and speaking to the supervisor.
The 2025 Protocol excludes the family home while the IVA operates, but a voluntary sale can create consequences that depend on the approved terms and whether the arrangement continues or later fails. Get the proposed treatment of the proceeds in writing before committing to a sale.
Jointly owned homes #
The £10,000 test is applied separately to each consumer’s beneficial interest. If only one owner has an IVA, the other owner’s share is not automatically the debtor’s asset, but the ownership and secured-borrowing figures still need to be recorded correctly.
If both owners are proposing IVAs, each person’s test is performed separately. Their proposals may be interlocking, but each remains a separate legal arrangement.
What about bankruptcy? #
Do not choose an IVA on the assumption that it guarantees the home can never be at risk. The 2025 Protocol offers specific family-home treatment, but mortgage enforcement, a failed IVA, non-family-home property and bespoke terms are separate issues.
Bankruptcy treats property differently and equity can be at risk. Homeowners should compare the actual likely outcomes of an IVA, bankruptcy, a Debt Management Plan and informal repayment before signing.
If you rent rather than own #
The family-home equity calculation does not apply to a tenant. Rent should be treated as an essential household cost when affordability is assessed.
Moving during an IVA can still involve public-register, affordability and credit-reference checks. Read renting with an IVA for the current deposit rules and practical steps.
Questions to ask before you sign #
- Does this proposal expressly follow the 2025 IVA Protocol?
- What value and secured-borrowing figures were used?
- What is my individual beneficial interest?
- Why is the term 60 or 72 months?
- Is the property the family home for Protocol purposes?
- Are there any creditor modifications or bespoke clauses?
- What happens if I move, sell, miss mortgage payments or the IVA fails?
If the answer is not clear from the paperwork, ask for it in writing. With a home at stake, do not rely on a sales summary or an old online guide.
Common questions about IVA property terms #
Can I keep my house in a 2025 Protocol IVA? #
The family home is excluded under the 2025 Protocol, but the mortgage and other secured payments must still be maintained. A bespoke IVA, an older arrangement or property that is not the family home can be treated differently.
What if my individual beneficial interest is exactly £10,000? #
The 2025 Protocol uses £10,000 or more as the point at which a protocol IVA is normally proposed for 72 months. The calculation and ownership share should be stated in the proposal.
Can the 2025 rule be added to my old IVA? #
Not automatically. Your approved terms continue to govern the arrangement unless a valid variation changes them. Ask the supervisor to explain the existing property clause before relying on the new Protocol.