What is an Individual Voluntary Arrangement Remortgage?

An individual voluntary arrangement (IVA) is an alternative to bankruptcy and has become more popular in recent years. It is a way that creditors get paid by setting up monthly payments over a period of about 5 to 6 years. As an option if an asset is available, like property, an agreement is decided upon that the lump sum gained by the sale of the property s used as a payment.

Advantages with IVA is that it is cheaper than bankruptcy, creditors prefer it because they get more than if they went through bankruptcy and thirdly, debtors don’t have the history or restructure of bankruptcy hanging over their heads.

When an IVA is set into action, it is considered binding on all creditors.

An IVA Remortgage can be the first step in becoming debt free.

An IVA remortgage is a remortgage to free up the equity in your home to pay the debts owed on your IVA. It can be the first real step in becoming debt free.

An IVA remortgage is likely to cost you more than a standard remortgage product, because of the increased risk to lenders. A broker can help you find the best rate on your IVA remortgage deal. Also, once you have your financial situation in better shape you don’t have to keep that IVA remortgage forever. You can apply for a new remortgage and get a better rate.