A remortgage part way through an IVA can be possible, but it usually needs your IVA supervisor’s written agreement, and fewer lenders consider an arrangement that is still active. What your supervisor thinks will depend on why you want to remortgage, whether you are borrowing more and how the change affects your creditors. Nothing is guaranteed, and any extra equity you raise may be claimed for the IVA.
This page covers remortgaging mid-arrangement for reasons other than the equity clause. For releasing equity to pay into or settle an IVA, see remortgaging to pay off an IVA. For a like-for-like new deal when your fix ends, see mortgage renewal during an IVA.
On this page
This page covers
- Credit issue
- Individual voluntary arrangements (IVAs)Usually stays on your credit file for 6 years from the start date.
- Status
- Not yet settledOutstanding balances usually narrow the options, and some lenders may expect them to be cleared as part of a remortgage.
In short
- Check your IVA terms first, as most restrict new borrowing without your supervisor’s agreement.
- Your supervisor will look at why you want to remortgage and whether creditors lose out.
- Lenders that consider an active IVA may want written consent and proof your contributions are up to date.
- Applying without agreement risks breaching your IVA, which could lead to it failing.
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.
Why might you need to remortgage part way through an IVA?
People rarely plan to remortgage mid-arrangement. It usually comes up because something changes. Each reason raises a different question for your supervisor.
| Reason | What your supervisor may focus on |
|---|---|
| Your fixed deal is ending | Whether your balance stays the same and how the new payment changes your budget |
| Lowering your monthly payment | Whether some of the saving should go to creditors through a higher contribution |
| Raising money for essential repairs | Whether the work protects the home’s value, and whether creditors should share in the equity instead |
| Adding or removing a borrower | Whether your share of the property, and so the equity available to creditors, changes |
A general guide only. Check your own IVA terms or ask your IVA supervisor how they apply to you.
If a partner owns the home with you, the extra points on our page about an IVA with a joint mortgage apply too.
How do you ask your IVA supervisor for consent?
A clear, written request tends to get a quicker answer than a phone call. It also gives you a record to show a lender later.
- Read the clauses in your IVA terms on property, new credit and changes in circumstances.
- Write to your supervisor explaining what you want to do, why, how much you would borrow and what the new monthly payment would be.
- Include an estimate of your home’s value and your current balance, so they can see the equity position.
- Wait for a written reply before submitting a full application or accepting any mortgage offer.
- Keep the reply, as a lender that considers an active IVA may ask for a copy.
For bigger changes, your supervisor may need to put the proposal to your creditors as a variation of the IVA, which takes longer. Start well before any deadline, such as your deal end date.
Does the stage of your IVA make a difference?
It often does, both to your supervisor and to lenders. The table below shows how things commonly look at each stage, for illustration only.
| Stage | How things may look |
|---|---|
| First year or so | Little track record of contributions, and defaults on the included accounts are recent. Lender choice is usually at its narrowest. |
| Middle years | A steady record of contributions can help show the arrangement is working, although the IVA is still active on your file. |
| Final year | An equity review may be close, so your supervisor may prefer to deal with any remortgage as part of that review. |
For illustration only. Every IVA and every lender is different.
What may lenders ask for while an IVA is active?
Only some lenders consider applicants in an active IVA, and rates are often higher than high-street rates. Those that do may ask for your supervisor’s written consent, recent IVA statements showing contributions paid on time, and the expected end date.
Your IVA contribution is likely to be counted as a committed outgoing when affordability is assessed. Equity matters too: a lower loan to value generally gives more choice, as our guide on how LTV affects a bad credit remortgage explains.
What happens if you remortgage without your supervisor’s agreement?
Taking on new borrowing without agreement can breach your IVA terms. Your supervisor could treat it as a failure to comply, which in some cases leads to the IVA being terminated. Our page on what happens when an IVA fails explains why that matters for your home.
If you are unsure what your terms allow, ask your supervisor first. Free, impartial advice is also available from MoneyHelper, StepChange and National Debtline.
What may affect a remortgage part way through an IVA
| Factor | Why it matters |
|---|---|
| Your IVA terms | Clauses on new credit, property and changes in circumstances set what you can do and who must agree. |
| Supervisor consent | Written agreement is usually needed, and lenders that consider an active IVA may want to see it. |
| Reason for the remortgage | A like-for-like new deal is a different request from raising extra money against your home. |
| How long the IVA has run | A longer record of contributions paid on time may help, both with your supervisor and with lenders. |
| Contribution record | Missed or reduced IVA payments are likely to count against you. |
| Equity and loan to value | Extra equity may be claimed for creditors, and a higher LTV narrows lender choice. |
| Mortgage payment history | Keeping your mortgage up to date alongside the IVA is strong evidence in your favour. |
| Income and affordability | Lenders stress test the new payment with your IVA contribution counted as an outgoing. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- A copy of your IVA terms, especially the property and new credit clauses
- Your supervisor’s details and any written consent or reply
- Recent IVA statements showing contributions paid
- Your IVA start date and expected end date
- Your mortgage balance, deal end date and any early repayment charges
- An estimate of your home’s value and what the remortgage is for
Frequently asked questions
Can I remortgage during my IVA just to lower my monthly payments?
Possibly, but tell your supervisor first. Your IVA budget includes your mortgage payment, so if it falls your supervisor may review your contribution and ask for some of the saving to go to creditors. Check your own IVA terms or ask your IVA supervisor how a change in outgoings is handled.
How long does a supervisor take to reply to a consent request?
It varies, and a request that needs creditors to vote on a variation takes longer than one your supervisor can decide alone. Ask as early as you can, ideally several months before any deadline, and put the request in writing so there is no confusion about what you asked for.
Can I remortgage in the first year of an IVA?
It is unusual. Early in an IVA there is little track record of contributions, and the defaults linked to it are recent, so lender choice tends to be very narrow. If your fixed deal is ending, a product transfer with your current lender may be more realistic than a new lender.
Would releasing money for home repairs be allowed during an IVA?
Some supervisors may agree if the work is essential, for example to keep the home safe or saleable, but it depends on your terms and on whether creditors would otherwise have a claim on that equity. Get quotes for the work and explain the need in writing when you ask.
Does the same apply to a protected trust deed in Scotland?
Not exactly. A protected trust deed works differently, including how your home is treated, so speak to your trustee. Our page on trust deeds and remortgaging in Scotland explains more.