Mortgage & Debt Arrangement Scheme

afur

Hi there,

I am currently on a debt arrangement scheme which is regulated by debt advisory service (scotland). At present i have a together mortgage with northern rock. I hae a couple of questions if anyone can answer them, please remember i am in scotland and scots law applies.

1. Is it possible to obtain a mortgage (to allow me to move house) whilst on a debt arrangement scheme.
2. If I sold my current property (for 85k) but owe only 72k on my secured mortgage, will northern rock demand the remaining 13k to pay towards my unsecure loan and can they legally do this.

does anyone else have experience of a debt arrangement scheme and acquiring a new mortgage.

regards

arthur

_Andy_

How much deposit will you be putting down on the new place and how much is the new place being bought for?
I take it you're aware that the interest rate on the unsecured loan will increase dramatically?

afur

the debt arrangement scheme prevents interest being added to the unsecured loan. my question is more in theory tha actual purchase.

_Andy_

Well the 'theory' of it is affected by deposit etc so can't give any meaningful advice at the moment.

afur

my question is not how much of a mortgage can i get, it is more
1. would any company ever be willing to provide me with a mortgage while on debt arrangement scheme and can i legally acquire one as i know im not supposed to get new credit but does this apply to mortgages.
2. this is based on me selling up and moving to rented accomodation.

please only reply if you have knowledge of debt arrangement schemes as i know these are still fairly rare so much so that a lot of companies have never even heard of them.

_Andy_

You're welcome.

Mrs_Bumble

I find it quite staggering that you are even asking this question, I assume that your outstanding mortgage committment is the £72K you quote and then it would appear that you have nearly £43K in unsecured debt that is in a debt arrangement scheme, You already know that you are not supposed to take on any more credit committments so of course it applies to mortgages as well. Why would any lender think that you were a good prospect to lend monies too?