Advice please

andy_H_4

Hi all

Looking for some advice,

I am on a DMP and have 3 months of mortgage arrears from the last 2 years, and want to change my mortgage for better rate soon.

Also i am employed by an agency and am finding it hard to get quotes because "agency work is not regular work" i have been told a few time... apart from the fact i have been working nearly 2 years through the same agency.. averaging 4 days work a week

Question is. can a remortgage pay off my arrears?

Many thanks in advance

fatbelly

Can a remortgage pay off my arrears? Yes!

There's a mortgage board on this site where you will get some informed advice.

On the debt side, you need to take action soon, or your mortgage lender will! With three months arrears you can expect a 'seven-day' letter from your lender, followed by a final demand. The next stage is possesion through the courts.

I'm concerned that you are on a dmp (who with?) and have mortgage arrears. It sounds as if the monthly amount on the dmp has been set too high and needs to be reduced, if not stopped altogether for a time.

You need to distinguish between priority creditors (mortgage, Council tax, elec and gas) and non-priority (credit cards, loans, catalogues, overdrafts).

Broken_hearted

Also the mortgage company are most likely charging an arrears fee each month, adding it straight onto the capital. You need to sort this now!

andy_H_4

I am on Pay-Plan dmp,for 1 year now
My arrears occured due to low earnings ( no work after the last 2 xmas )

I did pay a small amount (£50 to £150 amonth) against my mortgage arrears during the months i could not afford the full amount.

fatbelly

andy_H wrote:

I did pay a small amount (£50 to £150 amonth) against my mortgage arrears during the months i could not afford the full amount.

If your arrears are three months and reducing you should be OK.

I hope that's what you meant.

Even if you did mean that, broken hearted is correct. It is quite usual for a lender to charge something like £65 for an 'administration fee' if you're in arrears and so by paying £50 per month above the contractual amount, your debt is still increasing.