Friday 18th of December 2009
The news that fewer properties were repossessed in the third quarter of this year than the start is welcome, but more Britons lost their homes when compared to the previous three months, the Finance and Leasing Association (FLA) warns.
Recent figures from the Financial Services Authority show that 14,000 homes were repossessed in the third quarter. Britons concerned that their spiraling debts will result in their home being taken may have questioned whether an individual voluntary arrangement (IVA) would prove beneficial.
Unlike bankruptcy, an IVA can prevent a home from being repossessed as borrowers are able to repay their lenders on a monthly and more manageable basis, which could reassure creditors that they are trying as hard as they can to make their repayments.
"From our point of view, one of the big challenges for the government is going to be making sure that credit providers can get access to wholesale finance that is affordable at the moment," Russell Hamblin-Boone, head of communications at FLA, states.
But rather than taking out another loan, individuals may be best repaying their debt through an IVA, which at least will see their credit rating start to improve after around five years.
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
- Borrowers may have to take the first step to IVA advice
