Protecting Your Home in an IVA: Key Changes from July 2025

At Money Advice, we understand that your home is more than just bricks and mortar—it’s your stability, your future, and your peace of mind. That’s why we welcome the recent updates to the IVA Protocol, which came into effect on 1st July 2025. These changes are designed to make IVAs safer, fairer, and more manageable for homeowners. Here’s what you need to know:

Higher Equity Threshold, Less Financial Pressure

Previously, homeowners with more than £5,000 in equity were expected to explore equity release options during their IVA. This often meant facing difficult remortgage decisions, even when the terms were unaffordable. Under the new protocol, the equity threshold has been raised to £10,000. Equity is still calculated as 85% of the property’s market value minus any secured debts, but unless your share exceeds £10,000, you won’t be required to take any further action.

No More Mandatory Equity Release

One of the most significant changes is the elimination of mandatory equity release. Even if your equity exceeds £10,000, you won’t be forced to remortgage. Instead, your IVA term will be extended by 12 months (up to a maximum of 72 months). At Money Advice, we believe this is a huge step forward. For years, we’ve seen homeowners struggle with the stress of trying to remortgage under poor credit conditions. This new rule removes that uncertainty and helps protect your most valuable asset, your home. To see how this might apply to your situation, try our IVA calculator for an estimate of your monthly payments and potential savings.

Your Home Is No Longer an IVA Asset

The revised protocol also clarifies that the family home is now excluded from IVA realisations. In other words, your property won’t be treated as an asset to repay creditors. This means you can focus on getting back on your feet financially without worrying about putting your home at risk.

Who Do These Changes Apply To?

These changes apply to all new IVAs approved on or after 1st July 2025. If your IVA was approved before this date, it will continue under the previous rules.

Looking Ahead with Confidence

At Money Advice, we’re committed to supporting you every step of the way. These updates offer greater protection, transparency, and peace of mind for homeowners in IVAs.
Learn more about how to apply for an IVA today, or if you have questions about how these changes affect you, speak to one of our specialists.

We’re here to help, always