As interest only mortgages increase in popularity amongst UK borrowers, the number of people turning to IVAs to ease the burden of debt may be set to follow.
While a staggering 25 per cent of people with mortgages choose the interest only option, financial commentators express worry for those who go for a what seems like a good solution. The concern is that borrowers are taking a gamble with their mortgages, relying on an increase in property value to eventually pay off the debt.
When these risks do not provide the intended return, it could lead to a rise in the number of people resorting to IVAs to solve repayment problems.