- Monday, 20 April 2009Debt-hit Brits could look to an IVA to help repay what they owe on their house, as high loan-to-value (LTV) mortgages become less accessible.
Financial information provider Moneyextra.com notes that anyone with less than five per cent equity in their home could face difficulty in accessing lending to buy a new property.
And, for those looking to remortgage, the average LTV on approved mortgages now stands at 69 per cent.
This takes the typical deposit put down by the buyer to 31 per cent from its position of 18 per cent one year previously.
Both the number of mortgages and the LTV ratio on offer now stand at their lowest points for two years, Moneyextra.com adds.
As a result of this, homeowners who struggle to remortgage could find an IVA helps to protect their house.
With an IVA, equity can be released from the home in a number of years' time to help clear outstanding balances on a number of debts with different lenders.
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