Friday 13th of November 2009
The Council of Mortgage Lenders (CML) is predicting almost 50,000 homes will be repossessed in 2009 - a situation that, in some cases, could be avoided with the use of an individual voluntary arrangement (IVA).
It was also revealed by the organisation that almost 194,600 homeowners were, at the end of September, in arrears of 2.5 per cent or more of their total mortgage debt.
Speaking of the repossessions, CML director general Michael Coogan said: "It is difficult to see the case for a dramatic upturn in the absence of significant improvement in the wider economic picture."
Failure to pay mortgage debts can lead to, in the worst cases, repossession and homelessness.
But an IVA could be activated to tackle unsecured debts - such as credit card bills - which, in turn, may make monthly mortgage repayments easier to find.
IVAs could also be a preferable alternative for some homeowners to bankruptcy, as an IVA can allow people to retain control of their property.
By Mark Waterman
- 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
- IVA advice may support homeowners in negative equity
