A lot of people in the UK view their homes as a financial nest-egg but a downturn in the housing market shows that the housing boom isn’t indefinite. Many will experience insolvency due to this housing crash.
The housing market is currently experiencing a slow down of epic proportions and this will invariably impact on those who are struggling with debt. Insolvency is likely to occur when those who have fixed rate mortgages come to an end and they are placed on a higher interest one. The effect of this is that people are no longer able to make financial ends meet and when mortgage payments aren't met, the threat of repossession and insolvency are never far behind. Those who are struggling to make their payments often opt for an individual voluntary arrangement in order to get their finances back on track and pay off their creditors.
Insolvency – The Implications Of A Slowing Market
Our houses have long been our safeguards against financial insecurity and the threat of insolvency and bankruptcy. In the current climate, however, this is no longer as likely to be the case. In the previously buoyant housing market, a house would have been a safety net against debt as homeowners could secure remortgages at excellent rates due to the strength of the market and use the funds to pay off debts but now, however, the rates are inferior and more and more will slip into insolvency as a result. If, as expected, the housing and lending markets continue to tighten, remortgaging certainly won't be an easy or such an attractive option.
Insolvency – Bringing The House Down
Insolvency is a problem which is thought will really hit home in 2008. There are a number of precautions, however, that can be employed to make sure you're not bitten by insolvency or repossession. First and foremost, people need to start spending within their means to avoid going into debt in the first place. If, however, insolvency has become unavoidable, then many will opt for an IVA (individual voluntary arrangement) which is a legally binding agreement that sets up a structured means by which to pay creditors back.
Speak To Varden Nuttall About Insolvency
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.