Buying a house is a massive step, not to mention financial commitment, in any persons life but an increasing trend in the miss-selling of mortgages amongst lenders has seen a spike in insolvency.
Banks and mortgage arrangers are a much needed element in the purchase of a home but a surge in irresponsible lending has resulting in record number of homeowners experiencing insolvency of declaring themselves bankrupt. Whilst most lenders will make sure everything is above board when it comes to setting up a mortgage, a number of unscrupulous lenders are encouraging potential purchasers to falsify their incomes in order to secure higher mortgages.
Insolvency – The Problem With Miss-Selling Mortgages
Purchasing a dream home is obviously on the top of most people's agendas but if the price is beyond their means then that should be the end of the matter. Unfortunately, many are refusing to accept this and are being encouraged by lenders to embellish their actual earnings in order to secure the purchase. Unfortunately, this will invariably end in disaster, with many experiencing insolvency, bankruptcy or having their home repossessed when the reality of their wage fails to match the cost of their mortgage. Many who find themselves in this situation will opt for an individual voluntary arrangement (IVA) in order to get a handle on their finances and repay the debts that they owe.
Insolvency – An Accident Waiting To Happen
The current predicament with the housing market has the capacity to affect us all but, in terms of insolvency, the problem lies with those being advised to overstate their wages to get a bigger mortgage. The massive problem with insolvency in the US was a result of so many homeowners defaulting on their payments as they were sold mortgages that they couldn't afford. With the current trend of miss-selling mortgages in the UK and the insolvency that this invariably causes, it may not be long before the UK is confronted by a similar problem.
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.