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Mortgage and Remortgage while on an IVA

This Debt Solution is Available for residents of England, Wales and Northern Ireland

Taking out a new mortgage while on an IVA or Individual Voluntary Arrangement is unlikely possible. While you’re on an IVA you are restricted to take more than £500 of credit or loan. You cannot take out new credit or loan without asking your IVA Supervisor. Besides, you may find it hard to get approved for new credit or lender that can grant you mortgage since they’ll be conducting a credit check on you upon application.

We suggest you way your options and scrutinize your finances before you apply for a mortgage. You must also let the insolvency practitioner about it.

When you consider an IVA, you have to determine if you are prepared with the consequences. It is always best that you consider seeking debt advice or speak with a debt advisor before taking the necessary steps.

Should I consider to remortgage while on an IVA?

Under the stipulations on your IVA, if you have equity in your home or property, you may be urged to remortgage. This is done six months before your IVA ends so as to pay an IVA lump sum.

Remortgaging to release equity to compensate IVA payments is not prohibited in the same manners as getting a new mortgage. However, it wouldn’t be easy in finding a mortgage company that will extend you a loan during your IVA.

What happens if I can’t remortgage?

If you can’t remortgage, it’s going to be costly for an IVA. You may be paying extra payments which can extend your terms up to 12 months. However, you can get a third party to provide you with the money that you need to do this.

If you need further details about an IVA, contact us by utilizing our debt advice tool or calling us on  0800 193 1024. 

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