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A good starting point for IVA questions
By RobertP
Hi can someone help with a question I have about my property and an IVA. Can I apply for an IVA if I have equity in my property but cannot release this by remortgaging? I am self employed so I see little possibility of this but there is equity in the home.....
By Melissa S
Hi there RobertP and welcome to the forum

Yes it is should still be possible to start an IVA if you cannot remortgage to release the equity.

As long as you can afford the monthly payments for the IVA term there should not be an issue. usually at the end of your IVA you would be asked to remortgage to release any equity in your home or get a secured loan but if you are unable which is often the case due to poor credit rating your IVA will be extended for another year to compensate your creditors.

I hope this has helped answer your question, please ask if there is anything else you need while going through the IVA process and also you can always give one of the experts at Beat my debt a call. :)
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By James Falla
Hi there RobertP

Melissa is quite right, you can certainly start an IVA if you have equity in your property but are unlikely to be able to release this for whatever reason. In fact I have helped many people start IVAs where the equity in their property is actually greater than the debt that they owe.

You will still have to commit to releasing equity at the end of your IVA if possible. However if the mortgage market has not changed by that time and you still can't your payments will simply be extended for 12 months instead.