Tuesday 13th of April 2010
If you’re a homeowner who’s struggling to set aside cash to pay off your mortgage because of hefty unsecured debts, asking individual voluntary arrangement (IVA) questions could be a beneficial option.
While IVAs can’t help you pay back your home loan, they can freeze interest rates on credit card and personal loan debts worth more than £15,000, which could make your finances easier to manage and provide you with more funds to put towards your mortgage.
And it could be that more people seek this form of debt help in the near future, after the Council of Mortgage Lenders showed a monthly increase of 12 per cent in the number of loans advanced for house purchases in February.
The data also revealed the proportion of income spent on the mortgage’s interest payments by home movers amounted to an average of 9.6 per cent - highlighting the importance of budgeting appropriately for home loan repayments.
Not being able to pay your mortgage could lead to repossession and your family losing the roof over their heads, so seeking IVA answers sooner rather than later may help stop those large unsecured debts of yours jeopardising your future.
By Ashley Littley
- 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 questions could help as credit card take-up increase is expected
