DMP but mortgage. Interest or repayment?

james35_2

Hi some advise please.

I have a morgage which im currently paying interest only on and I'm wanting to put together a DMP. In order to calculate the money i have left over at the end of the month should I now change my mortgage to a repayment so protecting my future and reducing the amount I can pay my creditors?

Thanks in advance
James

garwil

Hi James35
I am in a similar position and was just wondering the same question.
I have not went down the DMP route yet and just this morning got BOS to agree to reduce my mortgage repayments to interest only for 12 months ( i have to say i was pleasently surpised at how agreeable they were to do this)
I would feel very unsure about using my reduced mortgage repayment figure in case my other creditors would then expect me to pay alot more ( which i cannot afford).
any advice appreciated.

true27

Hi James,

I was in a similar situation when starting my DMP. I decided to remain on interest only and throw everything I can at the debts, which are at a considerably higher interest rate, than the mortgage. But then, I have 20 years left on my mortgage and on my current DMP I should be debt free within 3 years. If you don't have long left on your mortgage and your DFD is also a long time away then maybe it is sensible to switch to repayment and then you will be truely debt free at a similar time, IYSWIM?

Hope that helps, True