Home repossessions expected to rise:

Having your home repossessed must be among the most distressing things that can happen to you. Unfortunately home repossessions are on the increase.

The number of repossession orders granted in England and Wales in the first three months of the year climbed to 27,530. That was up 17 per cent on the previous year, and by 9 per cent since the previous quarter.

The number of new court actions started by lenders seeking repossession also rose (i.e. the first stage in beginning repossession proceedings). There were 38,688 Court Orders in the first quarter, up by 16 per cent on the previous year, and by 7 per cent on the previous quarter.

House repossessions are not being helped by the credit crunch. The effects of the credit crunch on home repossessions are:

Lenders are less likely to Lend Money. Meaning house prices fall, it's harder to sell your house on, equity is eroded and Banks are more nervous if you start missing payments. It also means it's harder to move lender or release equity which are often solutions when you're struggling.

Fixed rate Mortgages coming to an end.A large number of homeowners are coming to the end of their fixed rate mortgage offers and current deals available are much more expensive meaning people will not be able to meet contractual payments.

Falling House Prices:

House Prices are Falling.House Prices are falling meaning that people are unable to sell their houses and often don't want to sell them because of negative equity. This in turn makes the Banks more likely to consider repossessing sooner rather than later before all your equity has gone. House Prices and the prospect of reselling your home are also affected by First Time Buyers and Buy-to-Let Landlords being unable to get mortgages. This means houses that they historically bought i.e. new apartments and townhouses have an excess of quantity over demand.

Interest Rate Cuts not being Passed on to Borrowers.Although the Bank of England is cutting interest rates these are not being reflected in your mortgage interest rates.

Help Available:

On the 9th of May the Government launched a service set to help home owners at high risk of repossession.The £10m service will include free debt advice from the citizen's advice bureau, free legal support at county courts (i.e. everyone attending a repossession hearing will get free legal representation to defend their case), and a new specialised debt service from The National Housing Advice Service.

Dealing with your unsecured DebtsIf you are struggling with your mortgage payments other help is also available. Because your mortgage is a priority debt it is important that you need to pay this above other less important payments. Often people will be up to date with their car payments or credit card payments but behind with their mortgage.

How Debt Management or an IVA can Help:

If you have unsecured debts (i.e. credit card, Bank Loan, Overdraft, Doorstep Lenders etc) a Debt Management Plan or IVA (Individual Voluntary Arrangement) can reduce your unsecured debt repayments to an affordable level ensuring your mortgage and other priority debts can be paid in full.

You may also be entitled to benefits that you are currently not claiming i.e. Working Tax Credit or Child Tax Credit.

If you or a partner have been made redundant have you considered claiming on any insurance policies (Payment Protection Insurance (PPI)) you may have taken out with your mortgage or other debts?

Contact your Mortgage Lender. Mortgage lenders are keen to help their customers sort out any payment difficulties. Also, the law says they must treat you fairly and take your circumstances into account. They may be able to come to a payment arrangement with you.

They may agree to:-reduce your payments for a set period -charge you interest only for a while, if you've got a repayment mortgage (usually you pay capital and interest) -give you a 'payment holiday' -extend your mortgage term to reduce your payments

At IVA.TV we can perform a full review of your finances and try and make your mortgage more affordable. An IVA or Debt Management Plan can actually safeguard your home and reduce your unsecured debt repayments. We can advise if these are the best solution for you.

For further IVA Advice please contact IVA.TV on 0808 131 0163 or by visiting IVA TV Website

An IVA will affect your credit rating for 6 Years. If you have equity in your property you will be expected to release this by way of a remortgage usually in the 4th year of your IVA.  Failure to comply with the terms of an IVA can result in Bankruptcy.