Help, advice needed

michelle45_2

At the moment Im stressed out with worrying how i can pay my bills each month. The only solouton is to go on a DMP, but I have just asked the council if i could buy my council house, but does anybody know a company who will let people have a mortgage for people on a dmp. The mortgage would be half of what im paying in rent.

This is the reason why I havent done anything about contacting a dmp my payments are up to date at the mo but i cant pay them this month.

thanks

michelle

Tixy

Hi Michelle

I know it is possible for people who have a mortgage to obtain another mortgage when theirs expires although usually not at the most competative rates.

Whilst a mortgage would be cheaper than your rent even if you were not on a DMP you would need a deposit saved up (at least 10%) and may struggle to get a mortgage due to the existing levels of debt you have. If you are currently stuggling to make repayments then any mortgage lender will look at these when deciding if you can afford a mortgage.

Have you contacted one of the free advice agencies about a DMP? http://forums.moneysavingexpert.com/showthread.html?t=2077631 They would I imagine also be able to look at your realistic chances of obtaining a mortgage at this moment.

Presumably even if you don't buy your council house at the moment the option would still be open to you in a year or 2? Maybe it would be better to focus on debt repayments and use any savings you have for your deposit against those debts and try to get in a better position before looking to purchase.

I'd suggest speaking to CCCS or CAB for some advice.

savingmummy

I would become debtfree then go for buying!
Have you done a SOA?http://www.makesenseofcards.com/soacalc.html
I find these very helpful and it helped me reduce my outgoings and become debtfree.

Goodluck x