Thursday 12th of August 2010
Britons who have to deal with money troubles and soaring debts could soon find themselves struggling to meet the cost of their accommodation.
Information on individual voluntary arrangements (IVAs) could, however, offer peace of mind to those off you who owe more than £15,000 on unsecured financial products and are worried about the prospect of losing your home.
According to figures from the Council of Mortgage Lenders, repossessions fell in Britain in the second quarter of 2010.
However, the Consumer Credit Counselling Service (CCCS) says a housing market recovery may lead to the figure rising, as there has been a large number of people with suspended repossession orders that have not been enforced due to lender leniency.
IVA information could, though, help people into the black by merging unsecured debt repayments into one, reduced-rate monthly outlay and freezing the interest on the deficit.
In addition, it protects the equity on individuals' homes, potentially allaying fears of repossession.
CCCS chairman Malcolm Hurlston says: "There is no doubt that lenders have shown leniency towards debtors during the recession by not enforcing suspended possession orders. However, this leniency may have been partly determined by the markets."
By Neil Burton
- 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
- Mounting debt management problems recorded by charity
