Considering Re-mortgage and Existing Mortgage Options
An IVA may require individuals to re-mortgage their property to release equity for debt repayment. Typically, this occurs after the arrangement.
However, if re-mortgaging is not practicable, the IVA may be extended to compensate for the lack of equity release.
To safeguard the property, existing mortgage payments must be maintained independently of the IVA.
Preparing for Life After an IVA
Once an IVA is successfully concluded, the credit file and the remaining debts included in the arrangement are written off.
However, individuals should be aware that their credit score will continue to be negatively impacted for six years following the IVA’s start date.
To rebuild their financial Life, they must manage their finances responsibly, gradually improve their credit score, and refrain from applying for additional credit until their credit score adequately recovers.