Without a paddle... support for anyone starting a DMP in 2010 (part2)

Mephista

I'm glad you found the advice helpful. That's what I'm here for.:D

mikon

Well I think CCCS and Payplan need to be planning ahead as I think they are going to be inundated with new clients as well as existing clients phoning up for reviews after todays news on inflation.

It is predicted that Bank of England is going to raise the interest rates 3 times this year. I am on a variable rate and will not get a new product due to my credit rating being trashed so I guess if rates go up DMP payment goes down and creditors will have to understand. It is hard enough to live as it is now but with 3 increases it will have devastating impact on some people.

The knock on effect is that anybody with a loan secured against their property will see their monthly payments increase as the interest rate increase a double whammy.

The outlook is not good but together we will get through it.


Hope everyone is doing fine.
Mikon

Professor_Pat_Pending

mikon wrote: »

Well I think CCCS and Payplan need to be planning ahead as I think they are going to be inundated with new clients as well as existing clients phoning up for reviews after todays news on inflation.

It is predicted that Bank of England is going to raise the interest rates 3 times this year. I am on a variable rate and will not get a new product due to my credit rating being trashed so I guess if rates go up DMP payment goes down and creditors will have to understand. It is hard enough to live as it is now but with 3 increases it will have devastating impact on some people.

The knock on effect is that anybody with a loan secured against their property will see their monthly payments increase as the interest rate increase a double whammy.

The outlook is not good but together we will get through it.


Hope everyone is doing fine.
Mikon

Mikon, I am halfway thru a 5 year fixed rate on my mortgage. I got it when my last deal ran out, I just called my mortgage company and within minutes got a new deal, no forms, credit checks or anything, and my credit files been shot for at least 4 years!

If you approach your current provider I reckon you might get a deal, this is what I will be doing in a couple of years, worth a shot?

I have read many times that if you keep up to date with your payments then the mortgage provider will offer you new deals when your old one runs out, its just switching provider than causes problems, as then a credit check takes place. PP

Mephista

Professor_Pat_Pending wrote: »

Mikon, I am halfway thru a 5 year fixed rate on my mortgage. I got it when my last deal ran out, I just called my mortgage company and within minutes got a new deal, no forms, credit checks or anything, and my credit files been shot for at least 4 years!

If you approach your current provider I reckon you might get a deal, this is what I will be doing in a couple of years, worth a shot?

I have read many times that if you keep up to date with your payments then the mortgage provider will offer you new deals when your old one runs out, its just switching provider than causes problems, as then a credit check takes place. PP

I agree Prof. I'm on a fixed rate for 2 years which was actually cheaper than the one before with our existing Mortgage Company - The Ulster Bank. They were absolutely brill and like you it was all really straightforward and done over the phone.

Mikon I reckon you should contact them and see what they come back with and as I'm a coward, I would advise you to go with the best fixed rate that they can offer you. That way you won't be affected by all of the proposed raises.

mikon

Mephista wrote: »

I agree Prof. I'm on a fixed rate for 2 years which was actually cheaper than the one before with our existing Mortgage Company - The Ulster Bank. They were absolutely brill and like you it was all really straightforward and done over the phone.

Mikon I reckon you should contact them and see what they come back with and as I'm a coward, I would advise you to go with the best fixed rate that they can offer you. That way you won't be affected by all of the proposed raises.

I might give it a go but I do not think my mortgage provider provides mortgages I know it sounds strange but I was with Northern Rock and then I was transferred to NRAM about a year or so ago. I do not think they offer mortgages anymore so I am stuffed I think. I will check with them though.

Thanks for the advice.

mikon

Well I checked NRAM out and they do not offer mortgage packages i would need to go to another bank or provider. So i guess I am stuck on a standard variable rate mortgage unless you guys know better. The reality of a DMP has hit home now. I thought having my credit record trashed would not bother me but if interest rates soar i could end up loosing my home if it comes to that then i will opt out of DMP and declare myself bankrupt.

Not to worry no good worrying about something that has not happened yet and may never happen.


How is everyone managing?

Mikon

eyeopener2

mikon wrote: »

I might give it a go but I do not think my mortgage provider provides mortgages I know it sounds strange but I was with Northern Rock and then I was transferred to NRAM about a year or so ago. I do not think they offer mortgages anymore so I am stuffed I think. I will check with them though.

Thanks for the advice.

I think your right about that Mikon, NRAM only look after your mortgage thats all.

However I don't think we are in for huge interest rate climbs you know, but any in our situations, are a pain. They won't rise tomorrow either. Moves of a quarter point here and there may be in the offing but nothing drastic. I'm on a variable with NAtionwide but rates would have to rise a bit before taking a fix would benefit me, so i'm hanging tight for now (probably foolishly but what the hell)

As an aside I remember my first mortgage and it was 13%, seems like a different world that now. Can you imaging the carnage in this country if inerest rates rose that high!

Is it worth contacting a broker and seeing what they could do for you?

eyeopener2

Just reading about interest rate projections;

A rise to 0.75% in the next four months

1% by year end

2% by end of 2012

3% by end of 2013

So says Mr King quoted in todays Telegraph, but these are not set in stone apparently.

GibbsRule_No3

Anyone wach this show tonight? Nightmare DMP companies for some people who were not using CCCS or Pay Plan. I'd never watched this show before the BBC were fined for getting rid of the older lady on Country File.

mikon

eyeopener2 wrote: »

Just reading about interest rate projections;

A rise to 0.75% in the next four months

1% by year end

2% by end of 2012

3% by end of 2013

So says Mr King quoted in todays Telegraph, but these are not set in stone apparently.

Mikons DMP Projections

A reduction of 0.75% in the next four months

1% reduction by year end = upset creditors

2% reduction by end of 2012 = very upset creditors

3% reduction of DMP by end of 2013 = Bankrupt creditors = £0

Daunting figures hope by the end of 2011 we have gone down the route of Egypt and the people have overthrown the Government and the banks.

Mikon