Friday 17th of December 2010
Homeowners who find themselves deep in the red as a result of a rise in interest rates may seek individual voluntary answers (IVA) in order to resolve their monetary problems.
Chris Jenkins, creative director at Dallas Matthews, said a hike in rates would mean a number of people who own their own property would be put under increased financial strain.
"Household bills are predicted to rise as gas and electricity companies increase prices," he stated, adding a combination of the two factors could result in more repossessions.
Mr Jenkins advised Brits "not to bury their head in the sand" as a rise in interest rates is going to occur at some point and people should be preparing for this.
Those people who fail to consider the implications of the increases may start looking for IVA answers if their financial burden becomes too much for them to handle.
According to the Council of Mortgage Lenders, repossessions on homes is expected to rise to 40,000 in 2011, up from 36,000 in 2010.
By Neil Burton
