Your IVA supervisor generally needs to know about significant changes to your income, and if your business income varies from month to month, this can affect what you pay into the arrangement, not just what a mortgage lender later assesses.
This page looks at trading through an IVA as a sole trader, director or contractor, and what changes once the IVA has completed. For the general position on remortgaging after an IVA, see remortgaging after an IVA, and for how self-employed income is assessed generally, see self-employed with bad credit.
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.
- Employment
- Self-employedLenders commonly ask for tax calculations and accounts covering one or more years.
Read the main guide: Remortgaging when you are self-employed and have bad credit
In short
- An IVA does not usually stop you trading, but your supervisor generally needs to know about significant income changes.
- Variable self-employed income can mean your IVA contributions are reviewed, separately from any later mortgage assessment.
- Many IVAs include a clause about trying to remortgage towards the end, and your supervisor’s agreement is usually needed.
- Once the IVA has completed, fresh accounts covering the period since help build a case for a lender.
Can you keep trading as self-employed during an IVA?
Generally, yes. An IVA is designed around your circumstances, and continuing to trade as a sole trader, run a limited company, or work as a contractor is usually possible. What changes is that your supervisor generally needs to be told about significant changes to your income or circumstances, since your contributions are based on what you can afford to pay.
If you run a limited company, business assets generally sit with the company rather than being part of your personal IVA, but your income from it, such as salary and dividends, is what counts towards your arrangement. Check the details in your own IVA terms, or ask your supervisor.
What happens if your self-employed income changes during the IVA?
| Change | What it may mean | What to do |
|---|---|---|
| Income rises noticeably | A review may increase what you contribute | Tell your supervisor and keep records of the change |
| Income falls for a period | A review may reduce contributions temporarily | Raise it promptly rather than falling behind |
| A new contract or client | May not need immediate action if income stays similar | Still worth mentioning at your annual review |
Every IVA is different. Always check your own terms or ask your supervisor rather than assuming.
Remortgaging towards the end of the IVA
Many IVAs include a clause asking you to try to release equity from your home, often towards the final 6 months of the arrangement, and some IVAs are extended, often by up to 12 months, if a remortgage is not possible. Being self-employed does not remove this requirement, but it can make the mortgage side of it harder, since a lender will be assessing both your trading income and the IVA together. Remortgaging during an IVA usually needs your supervisor’s agreement as well as a lender willing to proceed. See remortgaging during an IVA for more detail.
What changes once the IVA has completed?
Once your IVA completes, it stays on your credit file for 6 years from the start date, but you are no longer bound by its terms. For a self-employed applicant, this is also a natural point to pull together fresh trading evidence covering the period since, since a lender will want to see how your business has performed both during and after the arrangement.
- SA302s or accounts covering the years during and after the IVA
- Confirmation from the Insolvency Register once the IVA has been removed, 3 months after it ends
- Bank statements showing your current trading position
- A short explanation of your trading history through the arrangement
Explaining a joint IVA and self-employment to an adviser
If you are self-employed and had a joint IVA with a partner, an adviser will want to understand both your trading income and how the joint arrangement was structured. Our joint mortgage with an IVA page covers the joint side in more detail, alongside how self-employed income is generally evidenced.
What may affect a self-employed IVA remortgage
| Factor | Why it matters |
|---|---|
| Whether the IVA is ongoing or completed | A completed IVA is generally viewed more favourably, and remortgaging during one usually needs supervisor agreement. |
| How stable your trading income has been | Steady or improving income through and after the IVA supports your case. |
| Business structure | Sole trader, director and contractor income are evidenced differently, alongside the IVA itself. |
| Time since the IVA started | The IVA stays on file for 6 years from the start date, whichever point you have reached. |
| Supervisor’s position | Your supervisor’s agreement is usually needed for a remortgage during an active IVA. |
| Property value and equity | How much equity you have affects what may be possible, particularly if the IVA requires you to try to release some. |
| Other credit issues | Any defaults or missed payments alongside the IVA are usually assessed together. |
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.
- Your IVA terms, including any equity release clause
- Confirmation from your supervisor if the IVA is ongoing
- SA302s or accounts covering the years during and since the IVA
- Business and personal bank statements
- Confirmation of the IVA start date and, if completed, the completion date
- Insolvency Register confirmation once removed, if applicable
Frequently asked questions
Do I have to tell my IVA supervisor if my self-employed income goes up?
Generally, yes. IVAs usually require you to report significant changes in income, since your contributions are based on what you can afford. Check your own terms, as the exact threshold and process vary between arrangements.
Can I remortgage while self-employed and still in an IVA?
It is possible in some cases, but it usually needs your supervisor’s agreement and a lender willing to assess both your trading income and the IVA. This is generally harder than remortgaging once the IVA has completed.
Does a limited company I run form part of my personal IVA?
Generally not directly, since a limited company is a separate legal entity. What counts towards your IVA is usually the income you draw from it, such as salary and dividends. Check your own terms or ask your supervisor for how this applies to you.
How soon after my IVA completes can I remortgage as self-employed?
There is no fixed waiting period, but many self-employed applicants find it helps to have at least one set of accounts covering time since the IVA completed, alongside the years during it, to show a settled trading position.