Wednesday 17th of June 2009
Homeowners continue to be hurt by increases in mortgage rates, it has been observed.
According to moneysupermarket.com, a recent "flurry of activity" has been "to the detriment of borrowers", as charges are rising.
It could mean that more people need to seek IVA advice in order to reduce other debts and therefore afford the new rates.
The price comparison site observed that Halifax, Abbey and Cheltenham & Gloucester are all increasing their charges and although IVAs do not apply to secured loans, they can allow borrowers to keep on top of them by managing other debts.
And demand for such solutions could be set to grow as head of mortgages at moneysupermarket.com Louise Cuming noted that "rates can only rise from now on".
Mortgage broker Alexander Hall recently warned that increased charges can be expected as banks are beginning to anticipate their own costs of borrowing rising in the near future.
- 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 could reduce reliance on credit cards this Christmas
