Tenants have accounted for almost 56% of new IVA cases with MPG in 2012 – compared to 46.3% in 2011 and 40.9% in 2010. The total number of tenants taking out IVAs with MPG has risen by 126% in the past two years.
Homeowners arranging IVAs, on the other hand, have declined as a proportion of all new cases in the past year (from 38.5% to 32.5%), and the total number of cases involving homeowners dropped by 27% during the same period. Over a two-year period, however, MPG’s IVA case total involving homeowners has risen by 81%.
Homeowners also have significantly higher debt levels (an average of almost £45,500) than tenants (an average of less than £29,250).
According to MoneyPlus, the drop in the number of homeowners arranging IVAs is the result of low mortgage rates over the past three years. As and when mortgage rates start to rise, this will put significant pressure on disposable incomes.