Wednesday 2nd of June 2010
Individual voluntary arrangement (IVA) questions could offer assistance to homeowners who are concerned about adding a mortgage to their already mounting unsecured debts.
According to Lloyds TSB and Cheltenham & Gloucester, its standard variable-rate home loans are to get more expensive, with new customers getting a rate of 3.99 per cent, rather than the previous 2.5 per cent.
And this could cause householders some difficulty if they already owe a lot of money on personal loans and credit cards.
IVAs, though, could help them free up income to go towards their mortgage repayments.
That’s because they offer people the chance to become debt-free after around five years of hard work, freezing interest on all unsecured debts worth more than £15,000.
Once complete, homeowners might find they have much more disposable cash to spend on what’s really important in life - paying off the mortgage and keeping a roof over their heads.
That being the case, asking questions on IVAs may help to lift the financial burden currently falling on millions of Britons and offer them some much-deserved respite.
By Neil Burton
- 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 answers to assist credit card abusers?
