Can I sell my house after an IVA?

If you’re nearing the end of your Individual Voluntary Arrangement (IVA), or considering starting one, it’s natural to wonder how it could affect your home – and whether you’ll be able to sell it in the future.

An IVA and your property

When you enter an IVA, your home is protected – you won’t be forced to sell it or move out. However, if you own property, your IVA may be extended by up to 12 months depending on how much equity is in your home.

What is equity?

Equity is the amount of your property you own outright. It’s calculated by subtracting your outstanding mortgage from the market value of your home.

For example, if your home is worth £200,000, and your mortgage is £150,000, your equity is £50,000.

We recommend:

• Waiting until you’re removed from the Insolvency Register (this usually happens within three months of IVA completion)
• Taking some time to rebuild your credit rating, especially if you plan to buy another home
• Checking your credit file to ensure the IVA is correctly marked as completed (it remains visible for six years from the start date)

Selling your house during an IVA

Selling your home while still in an IVA is possible but complicated.

• Under the 2025 IVA Protocol [1]you’ll no longer have to pay any equity into your IVA
• Finding a mortgage lender is very difficult during an IVA due to your credit score
• You may not have enough funds left over to put a deposit on a new home
• Your expenditure may change due to moving house which may lead to a change in affordability in your IVA, if this is the case just let the team know

For most people, it’s best to wait until your IVA ends before selling or moving home – that way, your equity is protected and your financial freedom is restored.

What about future assets?

Even after your IVA has ended, some pre-existing assets may still be payable to creditors. One example is PPI refunds related to debts included in your IVA.

Although the deadline to claim PPI passed in August 2019, if a payout is received after your IVA completes, it may still be forwarded to your IVA company and distributed to your creditors – depending on when the debt was originally taken out.

Need support?

If you’re unsure what your next steps should be, we’re here to help. We offer confidential, FCA-regulated debt advice, and we’ll always explain all your options clearly – including what an IVA would mean for your home, finances and long-term goals.

Call us free on 0800 912 7269, chat with us on www.payplan.com or message us on WhatsApp: https://bit.ly/4RD3e3.

[1] The 2025 protocol only applies for IVAs approved after July 2025. Previous IVA protocols apply for IVAs approved before then.