Home ownership changes the IVA decision. The aim may be to deal with unsecured debt while keeping the mortgage safe, but equity and affordability need careful checking.
This guide was last checked on 26 April 2026 against official court, government, regulator, or legislation sources listed on this page.
Quick answer#
- A mortgage itself is secured debt and is not normally included in an IVA if you want to keep the home. You must keep paying the mortgage while dealing with unsecured debts.
- Mortgage arrears are priority and need separate handling.
- Equity can affect what creditors expect from the IVA.
- Remortgage, valuation and extra-payment clauses must be understood before signing.
What this means#
An IVA can reduce pressure from unsecured debts, but it does not make the mortgage disappear. The budget must leave enough for mortgage payments, insurance, service charges and repairs.
For homeowners, the comparison with bankruptcy is especially important because asset risk can differ sharply. A DMP may avoid insolvency but may take longer and has weaker legal protection.
What to check first#
- Check current mortgage payments and any arrears.
- Estimate equity using realistic property value and mortgage balance.
- Check secured loans, charging orders or restrictions.
- Check whether the IVA proposal has equity-release terms.
- Check whether the monthly payment remains affordable after all household costs.
What to do next#
- Protect mortgage payments first.
- Ask how home equity is treated in writing.
- Check what happens if remortgage is refused.
- Compare IVA, DMP, bankruptcy and informal arrangements.
- Get advice before signing any proposal if home equity is significant.
Keep copies of anything you send. If you speak by phone, write down the date, time, person you spoke to, and what was agreed.
What not to do#
- Do not include mortgage payments as ordinary unsecured debt.
- Do not sign without understanding equity clauses.
- Do not understate repair, insurance or service charge costs.
- Do not assume bankruptcy and IVA have the same home risk.
When an IVA may help#
An IVA may help homeowners with unaffordable unsecured debts where the mortgage is affordable and the proposal deals clearly with equity.
An IVA is a formal insolvency solution. It can affect your credit file, borrowing, assets, and future financial choices. It should be compared with a Debt Management Plan, Debt Relief Order, bankruptcy, informal arrangements and Breathing Space before you choose.
When an IVA may not solve this#
An IVA may be unsuitable if the mortgage is already unaffordable, equity treatment is unclear, or another route gives a better balance of cost, duration and asset risk.
If you are unsure, get regulated debt advice before relying on any single option.
What to do today#
- Write down mortgage balance and monthly payment.
- Estimate home value and equity.
- List unsecured debts separately.
- Check whether any creditor has a charging order.
- Use the IVA calculator with realistic housing costs included.
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