The number of individual voluntary agreements is set to soar next year under government plans to introduce Simple IVAs.IVAs are seen as an alternative to bankruptcy whereby debtors agree to pay a proportion of their debts to creditors. Typically, this is at least 25%, with an agreed payment every month. But banks have just reported bad debts of billions, with 2.6bn being attributed directly to customers. This has been blamed on relaxed bankruptcy laws and the rise in IVAs. Measures next year could make the process of getting an IVA much simpler, with the procedure eliminating the modification process and the need for a physical meeting. Instead, creditors will vote to accept or reject proposals by a date set by the nominee. A spokesperson for PricewaterhouseCoopers says: “The popularity of IVAs is likely to be boosted by the introduction of SIVAs, which are expected in 2007. These are aimed at cases in which debts are not disputed, contingent or otherwise undefined and are under 75,000 in total.” IVAs are now at three times the level they were in 2002 and are likely to increase further over the next couple of years. By the end of 2007, they will be as common as bankruptcies if this trend continues.
Members of the Professional Mortgage Packagers Alliance have seen an increase in business from the GMAC-RFC’s Partners range. The second quarter of the year showed GMAC-RFC Partners business levels up 25% on the preceding three month level overall.Jon O’Brien, PMPA director of operations, says: The sub-prime sector is experiencing high demand at the moment, which […]
Support is critical in the mortgage industry. Kevin Paterson’s A-Z review rates the marketing material that lenders issue to help brokers with sales and business development .
Scarborough is to launch a specialist lending brand called Scarborough Specialist Mortgages offering prime to heavy adverse deals. The society is following in the footsteps of others that have launched specialist brands, such as the Derbyshire’s Salt range. The range, which also includes specialist buy-to-let products, will initially be available to a select group of […]
They say bad news comes in threes so after a surprise base rate rise and the press awash with stories around the explosion in individual voluntary arrangements, what are we to expect next? Affordability crisis as personal debt soars, perhaps?
Sarah Scott – Marketing Consultant, Royal London This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]
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