Financial Difficulties - 2008 to be tough, say National Homebuyers

The number of people forced to declare themselves bankrupt is likely to increase in 2008 as Britons struggle with financial difficulties.

[UKPRwire, Wed Jan 09 2008] That is according to Direct Help UK, which believes that increased mortgage rates and a rising cost of living will tip many over the edge financially.

"I would imagine that there is going to be a steady growth in the volume of insolvencies. I would say that the number of people entering into both IVAs and bankruptcies will increase during 2008," said the organisation's director Iain Wrenshall.

"I think there will be significant instances where people will be coming to the end of their fixed-term mortgage agreement in 2008, having benefited from historically low interest rates, and so inevitably, their mortgage costs will rise, which in turn will put more pressure on their household budget.

"Due to the much talked about credit crunch, of a lot of specialist mortgage products previously offered to people under financial stress have been removed from the market place, which would otherwise have allowed them to restructure their finances by consolidating their unsecured debts using the equity in their property," he continued.

With more people struggling with financial difficulties, there is likely to be an increase in the number of homeowners seeking a fast property sale. Fast property sale expert Julian King of National Homebuyers comments, "It's all too easy to incurr debt, it not so comfortable getting out of it.

"Homeowners with financial problems should be looking for a quick property sale. Sell and Rent Back" is a solution where the homeowner can sell property quickly without having to move.

"Bankruptcy, IVAs or repossession can be easily avoided with one of the available mortgage rescue schemes".

Mr King is a director of National Homebuyers, the UK's leading provider of quick house sale and Sell and Rent Back solutions. Additionally, the company does not require the vendor to pay for a Hips pack in order to sell their house.

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