More homeowners turning to IVAs, says report
More homeowners turning to IVAs, says report
Thursday 5th February 2009
The accountancy firm revealed that 69.3 per cent of all IVA applications in the second half of 2008 were filed by property owners, compared with 57.8 per cent in the first six months of the year.
Grant Thornton believes that the figures point to the rise of the "middle-class IVA", with an increasing number of relatively well-off people declaring themselves insolvent after struggling to keep up with mortgage payments.
Mark Allen, head of IVAs at Grant Thornton, explained: "During the boom years, many homeowners remortgaged and used the equity in their properties to meet their debts, avoiding either bankruptcy or an IVA.
"With house prices falling and banks tightening their lending criteria, that option has now gone."
The firm expects IVA applications to continue to rise this year as property owners find themselves unable to pay off their debts with equity.
A recent survey from moneyexpert.com revealed that over 900,000 British householders have missed at least one mortgage payment in the last six months.
News article brought to you by SimpleIVA - UK IVA specialists.
Related News
Osborne reveals plans for 'debt responsibility' - 02/02/09
George Osborne has claimed that a radical overhaul of the banking system could help to tackle the UK's high debt levels
George Osborne has claimed that a radical overhaul of the banking system could help to tackle the UK's high debt levels
Bankruptcy 'can create breathing space' - 30/01/09
Declaring bankruptcy can be one way for people with severe debt problems to give themselves some respite
Declaring bankruptcy can be one way for people with severe debt problems to give themselves some respite
Credit card debt 'putting homes at risk' - 29/01/09
Many people who fall behind on their credit card payments are now at risk of losing their homes, it has been warned
Many people who fall behind on their credit card payments are now at risk of losing their homes, it has been warned
Mortgage rescue scheme 'won't cure debts' - 28/01/09
A financial expert has urged struggling homeowners not to pin their hopes on the government's new mortgage rescue plan
A financial expert has urged struggling homeowners not to pin their hopes on the government's new mortgage rescue plan
Negative equity 'worrying UK homeowners' - 27/01/09
The possibility of negative equity is causing many homeowners to worry about potential debt problems, new research has indicated
The possibility of negative equity is causing many homeowners to worry about potential debt problems, new research has indicated
News Article Search
Quick Apply
News Archive