Debt Advisers Direct - debt help essential for dealing with mortgage
on: April 23, 2009, 5:03 am
to the news that the number of homeowners falling behind on their
mortgage payments has risen by almost a third (31%) in the past
consolidation company DebtAdvisersDirect.co.uk has emphasised
the importance of keeping on top of mortgage payments, adding
that a mortgage should be the top priority for any homeowner.
company added that borrowers who are having difficulty with their
mortgage payments should seek expert debt help as soon as the
latest figures from the FSA (Financial Services Authority) showed
that there were 377,000 borrowers in arrears on their mortgages
at the end of 2008 - up 10% in the final quarter alone, and 31%
higher than the same period in 2007.
figures refer to mortgage accounts in arrears by 1.5% or more
of the borrowed balance, roughly equivalent to arrears of at least
figures mean that 3.4% of all mortgages were in arrears at the
end of 2008, compared with 2.3% at the end of 2007. Meanwhile,
new repossessions increased by 60% compared with the same time
period in 2007.
spokesperson for Debt Advisers Direct said: "We would expect
an increase in the number of homeowners falling behind on their
mortgage debt in recent months, but these statistics show just
how quickly it is occurring.
the economy is potentially about to enter a more severe stage
of the recession, it's very important that homeowners are careful
with their finances and avoid falling behind on their debt repayments.
particular, a mortgage should be the number one priority for any
homeowner. It is important that all debts are repaid on time,
but a mortgage pays for the borrower's home - and as such, failing
to keep up on payments could eventually result in the home being
spokesperson also said that if other debts are making it difficult
to pay the mortgage, a professional debt adviser may be able to
recommend a suitable debt solution that could make the borrower's
unsecured debts more manageable.
are few debt solutions that deal directly with mortgage repayments,
although in some cases a debt adviser may be able to negotiate
with mortgage lenders for a reduction in payments. However, a
debt solution that deals with the borrower's unsecured debts could
reduce the homeowners monthly outgoings, and therefore make it
easier for them to meet their mortgage payments."
Debt Advisers Direct spokesperson added that if the situation
becomes more serious and the homeowner cannot see a way of repaying
their debts in full, an IVA
(Individual Voluntary Arrangement) could help them avoid bankruptcy
by paying off an agreed percentage of their debts, and therefore
help them avoid losing their home.
the homeowner can agree a repayment plan for their mortgage arrears,
then an IVA can be arranged around that, meaning both the homeowner's
mortgage and their unsecured debts are taken care of."
the spokesperson was keen to emphasise the importance of speaking
to a professional debt adviser before deciding on any debt solution.
debt solutions are more appropriate for people in different situations,
and equally they all have their drawbacks. An expert debt adviser
can help to explain the pros and cons of each debt solution, to
help the borrower in establishing which debt solution is best
suited to their individual needs."
Contact Details: Pennington House
South Langworthy Road
0845 056 6480