Wednesday 10th of June 2009
There is little the government can do to ensure banks help those who are struggling with debt problems, an expert has suggested.
Chris Jenkins, co-owner of the Homeowners Advice Centre, explained that steps have already been taken to encourage lending, but these have not been successful.
With many people facing the prospect of repossession because they cannot afford to pay mortgages, he noted that the government cannot force banks to lend.
However, those who are unable to keep up mortgage payments because of other debts may wish to seek IVA advice.
Although an IVA does not apply to unsecured loans, it could see other debts reduced so that a mortgage becomes more manageable.
Mr Jenkins stated that banks should ensure there is "a clear differentiation between those of its customers who are unwilling to pay their mortgage and those that are unable to pay".
Recent figures from YouGov and Shelter indicated that 160,000 families are behind on their mortgage payments.
- 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
- Struggling homeowners 'should seek advice'
