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Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
Most IVAs (individual voluntary arrangements) run for 5 to 6 years, though the exact length is set out in the proposal your creditors approve and can be shorter or longer depending on what you can afford. There’s no fixed term set in law, so no two IVAs are guaranteed to run for the same number of years.
If you’re trying to work out when your own IVA will finish, or how that timeline could affect a future remortgage, the sections below explain what actually decides the length and what can change it along the way.
What decides how long an IVA runs?
The length of an IVA comes from the proposal put to your creditors at the outset, usually drawn up with an insolvency practitioner based on what you can realistically afford each month. A shorter IVA generally needs a higher monthly payment, while a longer one spreads smaller payments over more time. Creditors vote on the proposal, and once it’s approved, the agreed term becomes part of a binding arrangement.
Because it depends on your income, outgoings and what creditors are prepared to accept, five to six years is the common range, but it isn’t a rule. Two people with similar total debts could end up with different terms, depending on how much spare income each has after essential costs. Always check your own IVA paperwork or ask your supervisor for the exact end date rather than assuming a standard figure applies.
Can an IVA be extended?
Yes, in some circumstances. A common reason is a clause asking you to try to release equity from your home, often towards the final 6 months of the arrangement, to increase what your unsecured creditors receive. If releasing equity isn’t possible at that point, some IVAs are extended, commonly by up to 12 months, rather than ending as originally planned. Our guide on what happens to your home in an IVA explains this clause and how it tends to work in practice.
An IVA can also run longer if a payment is missed and needs to be made up over time, or if your income changes and the plan is formally varied with your creditors’ agreement.
| Typical IVA | Extended IVA | |
|---|---|---|
| Usual length | 5 to 6 years | Original term plus up to around 12 months |
| Common reason | Standard agreed proposal | Equity release clause not yet met, or a missed payment made up |
| Who agrees it | Creditors, at the proposal stage | Supervisor and creditors, usually by a formal variation |
| Credit file effect | 6 years from the start date | Still 6 years from the start date, whatever the term becomes |
Can you finish an IVA early?
You can complete an IVA ahead of schedule if you’re able to pay everything owed sooner, for example after a lump sum, an inheritance, or a rise in income. Finishing early doesn’t shorten how long the IVA shows on your credit file, since that’s fixed to the start date rather than the completion date. It does mean the protection from your included creditors ends sooner, and you can move on from the formal arrangement itself.
Some people specifically ask their supervisor whether an early settlement figure is available, particularly if a lump sum becomes unexpectedly available partway through. This is worth raising directly rather than assuming it isn’t possible, since practice can vary between arrangements.
Does the length of an IVA affect your credit file?
Not directly. Whether an IVA runs its planned term, finishes early, or is extended, it’s recorded on your credit file for 6 years from the date it started, not from when it actually ends. Our guide on how long an IVA stays on your credit file covers this timeline separately from the arrangement’s own length, including what happens on your file if it fails before completing.
What happens to your home while the IVA runs?
An IVA doesn’t automatically put your home at risk in the way bankruptcy can, but many arrangements include the equity release clause mentioned above, and remortgaging while the IVA is still active usually needs your supervisor’s agreement. Our guide on your home in an IVA sets out what this can mean in practice, and how it differs from what happens to a home during bankruptcy.
What this means if you’re remortgaging during or after an IVA
If your IVA is still active, most mainstream lenders are unlikely to consider a remortgage application, and anything affecting your home would usually need your supervisor’s sign-off first. Our page on remortgaging during an IVA explains what that can involve, including situations where a fixed deal happens to end while the arrangement is still running, covered on our mortgage renewal during an IVA page.
Once an IVA has completed, whether on the original schedule or early, some specialist lenders will consider applications, particularly as time passes and the rest of your credit file looks settled. Our page on remortgaging after a completed IVA goes into this, and our remortgage after an IVA hub covers the wider picture, including how an IVA compares with a debt management plan, which is informal and doesn’t have a fixed term in the same way.
Where to get help
If you’re unsure how long your own IVA has left to run, your supervisor can confirm the exact dates from your paperwork. If you’re worried about keeping up with the payments, or thinking about whether an IVA is still the right arrangement for your circumstances, free and impartial advice is available from MoneyHelper, StepChange and National Debtline before you make any changes.
Frequently asked questions
Is there a legal minimum or maximum length for an IVA?
No. There's no fixed minimum or maximum term set in law. The length comes from the proposal put to your creditors, based on what you can afford, and most fall in the 5 to 6 year range, though yours could be shorter or longer.
Does paying off an IVA early shorten its credit file record?
No. Finishing early ends the arrangement and the protection it gives you sooner, but the credit file entry still runs for 6 years from when the IVA started, not from when it ends. See how long an IVA stays on your credit file.
What happens if I can't complete my IVA in the agreed time?
Your supervisor may agree a variation, which can extend the term, or the IVA could fail if payments stop and no agreement is reached. A failed IVA is still recorded for 6 years from its start date, and the debts it covered may become chaseable again.
Can my IVA be extended without my agreement?
Any extension or variation to an IVA usually needs to go through a formal process involving your supervisor and, often, a further vote by creditors. It shouldn't simply be imposed without you being consulted, though the terms of individual arrangements vary, so check your own paperwork.