Here,s a press release that we put out on the 28th August
Andy Davie, site manager for IVA.co.uk, commented,
“We at IVA.co.uk are worried to hear reports of the growing number of people being forced into the sub-prime market for loans and mortgages. Sub-prime lenders specialise in offering mortgages to people with poor credit ratings at very high interest rates and this will particularly apply to those undergoing IVAs.
A condition of the majority of IVAs is that holders are expected to release around 85% of the equity in their property through a remortgage in the fourth year of their IVA. With sub-prime mortgage providers tightening criteria and increasing interest rates to unfeasible levels, those in an IVA will suffer the financial hangover of their remortgage far beyond the terms of their initial IVA contract.
My solution is simple. Property issues should be dealt with in the first year of an IVA, as is already the case with bankruptcy. In this way, even if people do need to accept less favourable mortgage deals, the cost of these will be accounted for within the IVA structure and will therefore remain affordable. Then after 5 years, once the IVA is completed, individuals will be able to remortgage, changing to a more favourable rate. This will help to prevent those coming out of IVAs from entering further spirals of uncontrollable debts.”
Andy Davie
IVA.co.uk Spokesperson
About me:
http://www.iva.co.uk/andy_davie_profile.asp
IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
