Home loan payments are not generally included in an IVA as this typically relates to personal loan debt. However, you do have some things to consider regarding your mortgage. References to IVA mortgages usually relate to the commonality of creditors having you re-mortgage your existing home loan to make the final lump sum payment on your agreement.

In some cases you may be able to get a new mortgage yourself while paying off debt on IVAs. However, this is sometimes difficult since lenders may see you as more risky given your existing credit problems. Some lenders are willing to work with you, though, if you have stable income and are making good progress on repaying your debt. If you work with a debt solutions provider, you may be able to find a new mortgage at a reasonable rate.

Before applying for a new mortgage, it might make sense to repay your debt as prescribed in your individual voluntary agreement. This may give you a better shot at a good mortgage.

More about IVA mortgages

Whereas bankruptcy wipes out your opportunity to get a new home loan, IVAs give you some hope. If you have two or more creditors, owe £15,000, and can repay a minimum of £200 per month, your creditors may accept your IVA application, thus reducing your monthly payments and total debt repayment obligation. Your agreement may include the common requirement in IVA mortgages that you pay your final payment from equity taken on a re-mortgage

Who can get IVAs?

Individuals, couples and businesses in certain financial circumstances may be eligible to apply for individual voluntary agreements, though benefits vary slightly:

• individuals – get the opportunity to dig out of overwhelming personal debt;
• couples – can work collaboratively through two individual agreements to repay one partner’s or both partners’ debt;
• companies – owners can use an individual agreement to get out from under overwhelming business debt and may or may not be able to continue business operations.

If IVA mortgages or re-mortgaging your home loan are important, you may wish to consult with your debt solutions provider when preparing your agreement proposal.