equity access

tesco_saver

Hello - help - i am in a payment plan (payplan) I have a car loan a mortgage - both are 1 payment behind.

I have equity in my property but cant get to it. can you sugest how i get to it. my credit rating is below 300 (bad bad).

if i could release the equity my payments would be lower and achievable.

Tixy

Hi

The only way to release equity would be to extend your mortgage or get a secured loan on the house. However both of these will be very difficult as you are in a DMP.

Instead I would suggest you need to speak to payplan about paying token payments for a month or 2 whilst you get back on top of your mortgage and car loan.

Then you need to work out why you are behind on those payments - and where you spending is different from the I&E you agreed with Payplan. This will have been set out so that you can pay all your priority costs and basic living costs and then still afford the payplan monthly amount.

If you can easily identify you had to pay something that was unexpected (eg boiler blew up or major car repairs) then explain this to payplan and they will let you switch to low payments. However in future should these things happen never miss your mortgage payment or other priority costs instead speak to payplan first about changing your payments.

If there hasn't been one large expense item then you may not be living within the budget you agreed with payplan. You'll need to try to work out a retrospective spending diary to see which areas you are spending more in (eg is it food, has gas &elec gone up, or is it that you spent too much at christmas etc). Once you know the reason you'll either need to change your spending habits or speak to payplan about redoing your whole statement of affairs and recalculating how much you can afford to pay your unsecured creditors each month).