UK Debt management company MoneyPlus Group warns of a 'perfect storm of debt issues' that would be generated by any increase in mortgage costs and current mortgage rates. The Company has claimed that UK homeowners are putting off dealing with their debt problems as mortgage costs have remained relatively low in recent years, leading to fewer individual voluntary arrangements being taken out.
MoneyPlus director of insolvency Stephen Quinn says: "The average disposable income of an IVA client has fallen by 37 per cent since 2008. Household bills have been increasing rapidly, due largely to rising fuel and utility costs, while salaries and tax benefits have stagnated. Because mortgage costs have stayed low, many homeowners have been putting off dealing with their debt problems. But an increase in mortgage costs, coupled with rising household bills and static salaries, would create the right conditions for a perfect storm of debt issues."