Debt Advice

fatbelly

As long as the mortgage is being paid you'll be fine.You won't lose your house.

That's the point of a dmp - the priority payments get made, the priority debts get negotiated amounts, then all the non-priorities get a pro-rata distribution of what's left.

Can't predict what will happen at the end of your fixed term.

Tixy

A lot of lenders will allow you to fix your rate again after your current fixed rate ends even with defaults etc on your credit file, but you generally lose the ability to shop around other mainstream mortgage lenders for the cheapest deal. Some won't agree another fix and would put you on their SVR.
You can sometimes find other lenders who would allow you to mortgage with them - but these tend to be subprime and not the best rates around (so possibly not better than the SVR you would be on).

Nayma12

Thanks for the advice. I did speak to someone at London and Country yesterday. They said a similar sort of thing. Although they seemed to think i'd have to stick with Santander for the duration of the dmp. I'm just worried the SVR will rise to a rate that will make our mortgage unmanagable. We have been really unlucky with our current fix as when we took it out, rates were at an all time high and staying on the svr then would have meant our monthly paymnets would have been about £1600 a month so we fixed. Within 6 months the rates dropped to an all time low. Based on todays's svr we would only be paying about £1,00 per month. That's just how it goes i suppose. Nothing i can do about it i know and my priority is re-paying my debts .

Do you know if a cretit record can be cleaned up at the end of a dmp?:j

fatbelly

Nayma12 wrote: »

Have done an soa with the cccs and would be able to pay £275 per month to all my creditors

If your mortgage goes up then this figure goes down. If the mortgage went up £275, then you would pay each non-priority creditor £1. You only have a problem on current figures if the mortgage goes up more than this.

You will get defaults from the NP creditors and these drop off after 6 years. There's not a lot you can do about that.