National Homebuyers: 'Insolvencies to soar'

The number of people suffering severe financial difficulties is set to soar in the months ahead, according to KPMG.

[ClickPress, Fri Feb 15 2008] Recent figures show that personal insolvencies actually fell in the final quarter of 2007 but the firm is convinced that things are set to get worse.

According to KPMG, as household bills, mortgage fees and repossessions rise, many more people will turn to bankruptcy.

It is now widely accepted that many Britons will have to tighten their belts as they face financial difficulties in the months ahead and Mark Sands from the firm said that this will translate into more insolvencies.

"Almost every economic indicator suggests that things are going to get worse before they get better," he said.

"Even with interest rates starting to fall, 1.4 million homeowners face the end of cheap fixed-rate deals this year, and the FSA [Financial Services Authority] has identified more than one million borrowers that are 'most likely to default on loans' and that is a cause of great concern.

"If people struggling with debt lose their home they often give up and either go bankrupt or enter into an IVA [Individual Voluntary Arrangement]," continued Mr Sands.

Fast home sale expert Julian King adds, "Homeowners facing IVAs, bankruptcy and repossessions can largely be avoided by harnessing one of the mortgage rescue schemes available to them.

"National Homebuyers has seen a dramatic increase in the number of people who simply need a fast sale of their property for financial reasons or need a Sell and Rent Back solution".

Mr King is a director of National Homebuyers, the UK's leading quick home sale firm, guaranteeing a fast property sale for vendors who need a quick sale. Mr King is also a founder of APBA, the Approved Property Buyers Association which is calling for government regulation for the Quick Property Sale and Sell and Rent Back industries.

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