Wednesday 16th of December 2009
Losing your home before Christmas - especially if you have young children - could be your biggest fear about your current financial situation, although an individual voluntary arrangement (IVA) can prevent such a scenario from occurring.
A new report from the Financial Services Authority shows that during the three months to the end of September, 13,987 properties were repossessed by lenders.
The report reveals that the number of individuals now falling behind with their mortgage repayments has lowered in recent months and if you are on a fixed-rate mortgage you may have found your repayments significantly more manageable.
But there could still be the threat of your unsecured credit lenders taking court action. You may have heard about IVAs but could have some questions about whether this repayment plan can protect your home.
As long as you keep up with you credit, store card and personal loan repayments, lenders should be reassured that repossessing a home is not the answer, especially for people with children.
Shelter and Citizens Advice recently said low-income households - which may include you - are more likely to lose their home and repossessions should be a course of action to be avoided by lenders.
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
- IVAs can freeze high interest rates on loans
