What will happen to my home in an IVA
The answer to this question will depend on whether you are a lodger, renting your home or in the process of buying it through a mortgage.
IVA whilst living as a lodger
As a lodger, the property you are living in will have no interest to your creditors.
Priority will be given to the cost of your lodgings within your financial statement, so as to ensure you will always be able to maintain your rent without the risk of falling into arrears.
Priority will also be given to all your other living costs, to ensure you have a robust, resilient and sustainable balanced budget.
Your IVA is a private agreement and, as such, your landlord or fellow lodgers will not be made aware of your financial difficulties.
Fortunately, the credit ratings of your co-habitants will not be impacted either, as credit reference agencies are no longer allowed to 'black listed' an address.
IVA whilst renting your home
If you are currently renting then the IVA budget will be based on you continuing to rent, as long as the rent is affordable and the property is in keeping with your needs.
Priority will be given within your monthly living costs to ensure your rent commitments can be met, as well as your council tax and other utility bills.
Priority will also be given to all your other living costs, to ensure you have a robust, resilient and sustainable balanced budget.
Your landlord will not be informed of your IVA, so there should be no impact on your relationship with your landlord.
IVA whilst a homeowner
On 01 July 2025, changes to the IVA protocol simplified what now happens to the equity in an IVA being proposed by a home owner.
The changes will affect the duration of your IVA, depending on the amount of equity in your home.
A simple assessment is undertaken before the IVA starts to determine 85% of the property’s value.
All mortgage and secured loan borrowings are deducted, along with any co-owner’s share of equity.
If your share of the remaining equity is below £10,000 at this point, then your IVA will last for 5 years.
If your share of the remaining equity is greater than £10,000, then your IVA will be extended to 6 years, in lieu of the equity you own.
These changes mark a significant improvement on what was previously expected of home owners under the older 2021 IVA protocol or any IVA that started before 01 July 2025.
Information of these differences can be found on our page describing IVAs for homeowners.
IVA with high equity
If your home has high levels of equity, it is possible that your circumstances will be more suited to a Non-Protocol Compliant IVA, or possibly another solution altogether.
Please call our helpline so we can discuss your options in ore detail.
To discuss your personal circumstances with an IVA consultant, simply call 0800 856 8569 now.
