Tuesday 16th of February 2010
Being able to clear your mortgage by the time you reach 50 may be a dream you think you will never achieve because of your unsecured debts such as personal loan repayments.
A new study by The Co-operative Bank Mortgages shows that two-thirds of mortgage holders want to clear their home loan by the time they reach 50.
But if your personal loan repayments are impacting upon the amount you can clear off your mortgage every month then you may find an individual voluntary arrangement (IVA) is one part of the answer to your goal.
An IVA can merge your unsecured personal loans of more than £15,000 into one, monthly and more affordable repayment, which could leave you with a little spare cash to put towards your mortgage.
Furthermore, in five years time, when an IVA should have helped to clear what you owe, you may find that paying off your mortgage is no longer an unattainable dream.
If the 0.5 per cent base rate has done nothing for your personal loan interest rates - and you have been unable to take advantage of this for your tracker mortgage - then an IVA could help.
By Chris King
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Lenders are asked to 'back off' under an IVA
