For those not yet in an IVA and own property

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1


User avatar
Posts: 33336
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Aug 13, 2021 3:53 pm
Anyone reading and researching here, who is also a homeowner, be aware that the way equity release is being treated has changed slightly under the terms of the recently introduced 2021 Protocol, details of which can be found here: 2021-iva-protocol-in-force-t91966

Basically equity is to be dealt with at the outset so you know exactly what the situation is before committing, so, when researching, the replies and advice already given over the years on this forum and others is now out of date.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


User avatar
Forum Expert
Posts: 77058
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Fri Aug 13, 2021 4:02 pm
At least people will know where they stand now.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.


User avatar
Industry Expert
Posts: 3104
Joined: Fri Nov 23, 2007 7:22 pm

Post by size5 » Wed Aug 18, 2021 8:21 am

I hope this helps for anyone looking in as to the new way equity is treated:

Option 1 - The equity is less than £5,000 (£10,000 for a joint case) then the case will be proposed at 60 months with no re-mortgage clause in month 54.
Option 2 - The equity is more than £5,000 (£10,000 for a joint case) but one of these criteria's applies to the case, then the property will be excluded, and it will be proposed as a 72-month IVA from the start.
• where the customer has a low disposable income, and the contribution level is below £100 per month (excluding HP) as at the final month of the IVA payment plan
• where the customer is aged 60 years old or more
• where more that 50% of the family's income consists of state benefits or pension
• where the customer him/herself does not contribute to the earned family income i.e. the sole earner is the spouse or partner
• where the customer has a serious long-term illness or terminal illness
• where the property has been adapted to take account of the disability of the customer or any member of his/her family
• where the property is part owned by the housing association
• where the partner is not aware of the IVA
• where the property is subject to a help to buy scheme
• where the estimated total secured borrowing payment is equal to or greater than 45% of the total household earned income (including pensions)

Option 3 - The equity is more than £5,000 (£10,000 for a joint case) then the case will be proposed at 60 months, but they will be required to try and release equity in month 54 and if not successful, then it will extend by 12 months to a 72-month IVA (same as now basically).

Kindest regards
Cert DR
23+ years in debt advice
I do not post for anyone other than myself

Follow my tweets at
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”