More IVAs caused by credit crunch, says KPMG

KPMG has compiled data from their clients which reveals that the number of homeowners entering into IVAs has climbed by 10% on the same period last year.

Mark Sands, insolvency director at KPMG, said: ‘Our research shows a steady 30% throughout the year of IVAs going forward, but there are now more than 40% of IVAs from people with mortgages being put forward.’

The increase on last year’s figures is being blamed on the lack of liquidity in the market, as low-rate fixed mortgage deals expire and people find themselves overstretched with increased repayments.

‘Mortgages are going up and debtors can’t repay their other creditors.

‘They used to be able to remortgage to see them out of debt, but this is no longer always an option,’said Sands.