If you’re a UK homeowner currently in an Individual Voluntary Arrangement (IVA), you may feel tied down by the 5–6 year repayment term. The good news is that there are specialist lenders who may allow you to remortgage to pay off your IVA early – sometimes after just 12 months into your IVA.
This option isn’t right for everyone, but for some, it can provide a faster route to financial freedom. Here’s what you need to know.
Can You Remortgage During an IVA?
Normally, taking on new credit in an IVA is restricted. However, some lenders will consider a remortgage if the funds are used to settle your IVA in full. You won’t be able to borrow extra for other purposes – it must be specifically for ending the IVA.
Typical Requirements
Every case is assessed individually, but common criteria include:
- At least 12 months into your IVA with a proven track record of payments.
- No new credit issues since starting the IVA (e.g. defaults or CCJs).
- Enough equity in your home, with a typical loan-to-value (LTV) of around 70%.
- Affordability – lenders will check you can manage the new mortgage payments.
- Insolvency Practitioner (IP) approval – your IVA company must agree to the early settlement.
Benefits of Settling Your IVA Early
- Become debt-free sooner and remove IVA restrictions.
- Simplify your finances into a single monthly mortgage payment.
- Start rebuilding your credit once the IVA is marked as completed.
- Potentially reduce stress and financial uncertainty.
Important Considerations
- Interest rates on IVA remortgages are usually higher than standard mortgages.
- You may end up repaying more overall if debts are spread over a longer mortgage term.
- Your IVA will still show on your credit file for up to six years from the start date, even if settled early.
How Oak Can Help
At Oak, we work with specialist lenders who may consider homeowners with an IVA. We’ll review your circumstances, check your eligibility, and guide you through the process with professionalism and empathy.
📞 Call Oak today to discuss whether an IVA remortgage could be the right option for you.
Important:
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. Consolidating unsecured debts into a mortgage may increase the overall amount you repay in the long term.
