Wednesday 22nd of April 2009
Today’s Budget could include help for people who are facing the possibility of negative equity, it has been suggested.
Recent Council of Mortgage Lenders figures indicated that the problem is affecting around 900,000 households.
Those who owe more than their house is worth as a result of price falls may find that they are unable to refinance and therefore need to address non-borrowing solutions such as IVA help.
And Michael Baxter, economist at Defaqto, stated that the government could intervene in order to support homeowners.
He predicted that continuing drops in house prices could mean the number of people in negative equity passes two million, adding that a government-backed scheme might be necessary to ensure funding is available.
Last week, a study by first direct indicated that 16 per cent of consumers do not expect prices to begin rising until at least 2012 - which could mean a greater number of people need to seek IVA advice.
- 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
- Want to take control of your finances? IVA questions and answers may offer assistance
