- Thursday, 16 April 2009More Britons could be looking into setting up an IVA as mortgages become less available.
The Homeowners Advice Centre notes that the credit crunch means it is more difficult to remortgage as a means of consolidating debts.
Such observations could lead to alternatives increasing in popularity, which may see a rise in IVAs in the remortgage downturn.
Co-owner of the advisory service Chris Jenkins says: "The middle classes are struggling in the current financial climate and property market.
"Currently, asset-based wealth is being eroded by falling property prices and the inability to release capital."
He points out that assets alone do not mean that an individual has money in their bank account.
For those who do not, setting up an IVA could be an alternative to remortgaging - and could delay releasing equity for a number of years.
This could allow the housing market to begin its recovery before the time is reached to release the capital contained within a property in order to use it to tackle debts.
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