- Friday, 6 March 2009With an IVA, mortgage holders could find they are able to resolve an untenable financial situation.
And doing so may be more necessary in the coming months as the low base rate results in a reduction in the amount of mortgage funding entering the financial services industry.
Director-general of the Building Societies Association Adrian Coles claims that the benefits of a low base rate for tracker mortgage customers are outweighed by the potential negative impacts of such an economic climate.
"Lower interest rates reduce the incentive to save and, in turn, this limits the flow of funds into the mortgage market," he explains.
With an IVA, mortgage customers could keep control of their debts if they find they are unable to gain approval for a new deal through the usual avenues.
Neil Young, chief executive officer of property portfolio consultant Young Group, claims that this could be the case for more consumers than it may first appear.
Despite the low base rate, he points out that lending criteria mean people looking for high loan-to-value ratios are still excluded from the market.
Such individuals could be left looking for
IVA help as a result.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
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