Demand for Debt Advice being Fuelled by Buy-to-let Investors

Published ¤ 16/03/2010 15:01:00

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According to IVA.com, an increase in buy-to-let investment casualties has seen increasing numbers of people looking for serious debt advice.

The company has reported a 53% leap in distressed buy-to-let investors struggling to pay their creditor. With typical debts ranging from £163,000 to £201,000, IVA.com - in all reported cases those saddled with the property debt were middle class professionals owing substantial mortgage arrears.
IVA.com director Terry Balfour said: "We have seen a near melt down in the buy-to-let market, with a combination of rental arrears caused mainly by tenants losing their jobs, void periods and high fixed rate mortgages causing serious problems.
"While it is encouraging to see that the total number of buy-to-let repossessions remain a relatively small percentage of the market, our experience is that when landlords do get into trouble, the debt levels become very unmanageable."
IVA.com is also experiencing higher traffic from financial services professionals, including legal and banking sector workers.
Balfour said: "Our biggest debt cases are currently solicitors - again, in the buy-to-let market - which just goes to show that even the professionals can get it seriously wrong." The profile of those with serious debt varied considerably, he added.
"They range from ordinary blue collar workers, who probably make up the bulk of our case histories, to civil servants, police officers, firemen and members of the armed forces.
"The average level of debt is £50,000, although from time to time we get people with relatively low debt levels who are in trouble. Some come to us with just £15,000 of debt, but if they have no means of repaying, then an IVA may be an appropriate solution."
If you or someone you know is struggling to meet your debt repayments, come and talk to us. We offer FREE debt advice, and we can help you to find the best possible solution to your problems. Call us on the number above.

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