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Debt can get out of control for many people today. If your bills are becoming bigger than you can handle on your own, an IVA might be the answer. IVA’s are an alternative to bankruptcy for many who are in over their head. They are a desirable option because you do not have to share your credit problems with your employer or the press. Payments are made to all of your creditors in amounts that you can afford and at the end of the term, you do not have any further obligation to your creditors.

An IVA is generally negotiated through a licensed third party that is responsible for working with your creditors to come up with terms every involved party can agree upon. Part of the agreement is often a renegotiation of your mortgage at the end of the term, allowing you to use equity to pay off additional debt. This is similar to agreements made in a bankruptcy situation, although bankruptcy often requires you to sell your home. However, negotiating a new mortgage can be challenging at best after going through the IVA process, since many lenders are not willing to offer money to an applicant with less than stellar credit. An IVA remains on a credit report for up to one year after the IVA is completed, which means it can be six years or more before your credit is repaired.

This is where an IVA mortgage comes in. These loans are offered to people who are in the midst of or finishing an IVA term. The loans are often provided at a slightly higher interest rate, although the competitive nature of the industry generally keeps rates at a reasonable level. Unfortunately, fluctuations in the market and a current credit crunch have led many lenders to discontinue their IVA mortgage program. While this is a discouraging fact to many with IVA’s today, it is not the final word on the IVA mortgage.

The good news is that you can still get an IVA mortgage from a number of different creditors. Most are available at around a 70% loan to value, which qualifies many applicants in the IVA program. An IVA mortgage can be offered at the end of the IVA term, which allows applicants to renegotiate their current mortgage and receive necessary equity from their home. In some cases, a mortgage is even available while an applicant is still in the midst of his IVA obligation.

Whether you are in the midst of an IVA, or looking to renegotiate your mortgage at the end of your term. While an IVA mortgage might not be as easily available as it was in years past, they are still a viable option for many in this situation. An IVA mortgage allows you to rebuild your credit and save your home at the same time. By shopping around for the best mortgage and terms, you can get your credit back on track and return to financial health.

David Farrell is Managing Partner of Affordablemortgages.co.uk a mortgage advice practice offering advice on IVA Mortgage deals across the UK