Tuesday 5th of January 2010
If you are in serious debt one of your biggest goals for clearing your credit balances could be so that one day you can own your own home, an ambition an individual voluntary arrangement (IVA) could help with.
According to Halifax, four in ten local authorities are now affordable to first-time buyers, up from 24 per cent between 2008-09.
But if you have climbing personal loan and credit card repayments, the majority of your income could be spent on meeting those and other financial commitments.
This may mean that currently, you are unable to set aside any money for a mortgage.
You may find an IVA answers this difficulty. By helping you clear your unsecured debts over approximately five years, you could find that once the agreement ends, you can start putting money aside towards a mortgage.
"The tightening in lending criteria over the past two years is, however, making it very difficult for some to take advantage of lower property prices and mortgage rates," explains Martin Ellis, housing economist at Halifax.
While it is currently difficult to get a mortgage, you may find now is the right time to repay what you owe through an IVA until lending conditions become more lenient.
By Mark Waterman
- 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
- IVA questions may be on the increase in England and Wales
