Wednesday 14th of April 2010
Asking individual voluntary arrangement (IVA) questions could benefit British couples who want to live together but can’t afford the cost of a house, following comments from Moneynet.co.uk.
IVAs help eradicate unsecured debts worth more than £15,000 over a period of five years, freezing interest rates in the process - which could offer a helping hand to those in a long-term relationship.
Because if you or your partner owes a lot of money on credit cards and personal loans, how do you start to put aside sufficient income for a deposit on a property when much of your salary is going towards hefty debt repayments every month?
According to Moneynet.co.uk’s spokesperson Andrew Hagger, it’s this inability to afford a deposit that’s the real stumbling block for British couples.
They have found it more difficult to move in together because "a lot of lenders have wanted bigger deposits", he says.
"Whereas if you look back to two or three years ago," he continues, "you could get 100 per cent mortgages reasonably easily".
By cutting down the money you owe with the help of an IVA, you could find yourself both debt-free and comfortably living with your loved one in five years time.
By Rachel Powell
- 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 help cash-concerned Britons pay off Christmas debt
