After Advice Please

mike575

Hi, I have managed to run up an enormous debt but thankfully I am starting to pay it back thanks to Payplan.

My first query is regarding PPI, one of my creditors is Capital One, who I owe around £4.5K. They are in my agreement with Payplan but Cap One, around 7 or 8 years ago made me take out PPI and I mean made me. I was a liitle late with a payment and they phoned me up and insisted that I took out PPI even though I am self employed. Given that they are in my creditor plan, can anyone advise whether they could enfource payment of my debt immediatly if I now pursued them on forcibly selling me PPI?

Secondly, I have no CCJs and never had but my credit score is just shot to hell. Before I approached Payplan I was two months behind on my Mortgage around £2800. I have been paying this back at £100 per month but only for the last 6 months. I would like to move down market with a smaller house. I presntly have a 5 bedroomed detached house and I do not need such a large house. Do you think I would still be considered for a Mortgage if I moved downwards to assit in redcuing my debt. I would still need a smaller mortgae of around £50k but much less than the £135K I have at present.

And yes I am a big earner but unfortunately I was rather foolishly a much biggger spender.

Thanks Mike.

never-in-doubt

PPI reclaiming is here: http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Usually any refund would go toward the debt and not sent directly to you. The fact you have defaults (assumption) will have an impact on any mortgage you may be offered, but like most things if the % LTV is low then you're a smaller risk aren't you? So if you got a £300k house and got a £50k mortgage, you'd be better than if you wanted a £70k house with a £50k mortgage.

GeorgeUK

I would definatly pursue the PPI claim with Cap1. Just because you are currently in an agreement to repay them does not mean in a month they can't turn around and request full payment. They could request full payment, but don't know how they could enforce it if you don't have the money. I would just go through with the claim and hope this reduces the amount of money you owe them.

Although you would probably be able to get a mortgage, it probably wouldn't be at the best high street rates. Hopefully someone with experience of this can answer that for you.

Have you tried claiming back your credit card charges? (not part of the recent test case)
Also it may be worth checking that your house is in the correct council tax band.
http://www.moneysavingexpert.com/reclaim/

You've probably already looked at your expenditure with Payplan, but if you post up a statement of affairs, we may be able to suggest some other areas where you can make savings.
http://www.makesenseofcards.com/soacalc.html

planning_ahead_2

Have you tried approaching your current mortgage provider and asking if you could move the mortgage with you, but obviously reducing it when the move takes place. I would have thought that they would be prepared to at least consider this as they would still have security over a property but also are much more likely to get full monthly payments from you on a lesser value loan than they are at the moment.

At least try asking... the worst that can happen is they say no but at least you will know if this is an option.

mike575

Thanks for the tips guys.

Mike.