Sunday 14th of February 2010
If you currently appear to have little spare cash over once your financial commitments have been met then you may have considered remortgaging your home in order to strengthen your household coffers.
But if you are worried about taking this step - and the potential impact it could have on your property - then you may, instead, decide to ask some questions on individual voluntary arrangements (IVAs).
According to Moneyfacts.co.uk, lenders are being cautious about who they accept for a remortgage. And if your lack of adherence to your unsecured debt repayments has left your credit reference dented, you may find lenders close their doors to you.
While an IVA will leave a mark against your name, it could help you clear a large portion of your debt, although you have to commit to the plan for around five years.
But while five years may seem like a long time to be bound by IVA agreements, it could prove better for you in the long term when compared to remortgaging your property.
By Hayley Jones
- 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
- Equity release "a major commitment"
