Mortgage on DMP

kier333

If i were to go ahead and arrange a DMP, would it have any impact on fixing into a 5yr Fixed after my current fix period ends in Jan. I have a cc, loan and over draft along with the Mortgage all with the same lender. I am concerned that if i set up a DMP to include old outstanding debts of around 12k, and having to also include my current debts from my bank ie cc, od, and loan this will affect me getting the fixed deal i want come jan. Also how does it affect my contract mobile phone which i am up to date with...only 20pcm

Thanks

thriftymoo

The DMP itself will have no impact on ur credit rating, its the action that creditors take that affects it. If ur not keeping up with the contractual payments for your debts (ie. not paying the min payments expected) whether u have a dmp or not ur creditors are allowed to go down a route called the collections process whereby they would firstly default you. The default and reduced payments are the bit that is registered on ur credit file and although it wouldn't make it impossible for you to get credit its going to make it very hard as the default will sit there for 6 years. chances are if u've already missed payments or made reduced ones ur credit rating will have been affected.

A dmp wont mean that you have to end ur phone contract.

Who are you looking at a dmp with? I'd strongly recommend contacting CCCS for free advice regarding dmps if you havent already.

Hope this helps sorry if ive babbled im a bit away with the fairies on cough medicine!

kier333

Thanks, i do intend to use cccs, i have everything paid up to date with my bank and phone, this includes my load, cc,overdraft and mortgage. The reason to go on a dmp is very old debts from 2003/04 they have been chasing me for a while and its time i got it sorted, so i understand i would need to include all debts, both up to date and old? I can afford 500pcm but my biggest concern is that my lender will not let me fix into a 5yr fixed once the loan,cc, and od i have with them are included into the dmp. I just do not want to mess up getting the mortgage fixed again.

Tixy

I would speak to CCCS about this as well. They may well advise trying to fix the mortgage next month and then starting a DMP after that.

In the meantime you could consider sending just token payments to any old creditors saying you are seeking advice from the CCCS (which you are) and just keep up with your current debts as much as you can until the mortgage is fixed.

You'll need to open a new bank account with a bank you don't owe any money to and move your income in to that account prior to starting your DMP, this needs not to have an overdraft but otherwise can be either a regular account or a basic account. That and having a couple of phone meetings with CCCS will probably take most of January to sort anyway.

kier333

Thank you very much, this is what i will do.