Future ruined due to DMP

j2140b_2

Hi there
I'm at my wits end. I don't know if I've been naive, stupid or both. About 18 months ago we were struggling to meet repayments on 3 credit cards my partner and I had so when a DM company cold called us (one of many at the time) we decided to sign up and they dealt with the credit companies and got reduced repayments and one full and final settlement for us. We specifically asked the DM company if being on a such a plan would effect us getting a mortgage and were told 'no'. We now find ourselves having to move house due to my partners work and we can't get a mortgage due to the defaults on our credit report.

I'm just sick to the stomach with what this is doing to us. My partner is now living 140 miles away from me the kids and we have no signs of being able to move. Our current lender said that the defaults will stay with us for 6 year but I'm confused. Is that 6 years from when we can pay them off or do the defaults get removed after 6 years even if there is still an outstanding balance. The total owed is under £3k but there is no way we can afford to pay them off and I can just see us never being able to get a mortgage and having to continue to live apart indefinately. I'm guessing there is no way of getting these defaults removed.

I'm so angry at myself for letting myself get in this situation. When we went down the DMP route we had no idea it would have such a devastating effect on our future.

MIKE770

j2140b wrote: »

Hi there
I'm at my wits end. I don't know if I've been naive, stupid or both. About 18 months ago we were struggling to meet repayments on 3 credit cards my partner and I had so when a DM company cold called us (one of many at the time) we decided to sign up and they dealt with the credit companies and got reduced repayments and one full and final settlement for us. We specifically asked the DM company if being on a such a plan would effect us getting a mortgage and were told 'no'. We now find ourselves having to move house due to my partners work and we can't get a mortgage due to the defaults on our credit report.

I'm just sick to the stomach with what this is doing to us. My partner is now living 140 miles away from me the kids and we have no signs of being able to move. Our current lender said that the defaults will stay with us for 6 year but I'm confused. Is that 6 years from when we can pay them off or do the defaults get removed after 6 years even if there is still an outstanding balance. The total owed is under £3k but there is no way we can afford to pay them off and I can just see us never being able to get a mortgage and having to continue to live apart indefinately. I'm guessing there is no way of getting these defaults removed.

I'm so angry at myself for letting myself get in this situation. When we went down the DMP route we had no idea it would have such a devastating effect on our future.

If you are not up to date on your repayments then your credit file is reported upon regardless how you are going about a solution, sorry but that is the way it goes for every one of us who get into difficulty, we have been there.

But shop around might cost a bit more but sure some company will take you on! good luck!!

Mrs_Arcanum

Soon after you had trouble with your CC you would have default notices - regardless of the DMP.

Would also look at a FREE DMP service such as Payplan or CCCS. At least then ALL the money you pay on the DMP will be going to creditors rather than the company who cold called you.

MrsTUS

The defaults drop oiff your credit report regardless of whether they have been paid or not - 6 years from the date of issue. I'm surprised the DM company told you otherwise, however, I suspect they were more concerned with getting another fee paying customer signed up. It's a sahme you've been mislead, but you will get through this and come out the otherside. It might be worth speaking to the creditors you owe money to and asking nicely if they'd consider removing the defaults if the account is settled/partially settled/or if you're currently engaged in a repayment plan with them that you're meeting regularly... Good luck, remember, this won't be forever. Is there no way that you could let out your mortgaged home and move down to be with your husband? It would at least close the distance gap and reunite the family - might you even be able to let the house out for more than the monthly mortgage repayments and accrue a bit of extra cash to throw at your debts to clear them quicker? :] Just a suggestion anyway...

Tixy

First think about switching to a free DMP provider, such as one of the charities. That will mean all your repayment goes towards your debt and you will be debt free sooner. As stated the defaults are with you for 6years from the date of issue, and are inevitable when you are on a DMP. You won't get them removed as you have defaulted.

Once the DMP is finished and the defaults marked as satisfied you would probably find you might be able to get a mortgage, although it would be a subprime one and more expensive than a high street mortgage. You'd need to talk to an independant mortgage advisor. Then a few years after once the defaults no longer show on your credit files you will be able to remortgage to a more competitive rate.

In the meantime would it be feasible to consider renting out your property and then renting somewhere for you all near OHs work?

throughtherain

Have you considered selling and renting?

I know there can be a certain stigma associated with renting instead of buying in this country but if not being able to get a mortgage is causing so much stress, why not rent somewhere until you're back on your feet properly?

MIKE770

throughtherain wrote: »

Have you considered selling and renting?

I know there can be a certain stigma associated with renting instead of buying in this country but if not being able to get a mortgage is causing so much stress, why not rent somewhere until you're back on your feet properly?

More people are renting in this climate as reported in news sources, trouble is since Thatchers year no limit on costing of rent thank to her and cons government.

poppasmurf_bewdley

How could you possibly think you'd get a new mortgage when you were on a Debt management Programme? Even though you were told by the DMP company that you could, common sense should have told you that no-one would lend money to someone who was unable to pay back what they already owed.

LittleMonkey16

Do consider renting. My partner and I earn enough to live on but not enough to save a deposit and get on the property ladder. We rent. The preoccupation with owning a home is a very Britishthing. I'm sure it's nice, but renting the right place isn't exactly horrible either. Can be expensive, but shop around. If this is worrying you so much and keeping the family apart I'm not sure it's worthit for the sake of holding on to a homeyou can't all share. I'd rather rent and be with my partner than own a home I have to live in without him.

InDeepDebt

A few questions:

Is your partner's job permanent and secure?
Is there equity in your property?
Where is your partner living during the week - rented or paid for by employer?
Does your other half travel home at weekends? 280 miles at (say) 40 mpg is 7 * £6 or £42. Soon mounts up over a month.

If it were me then I would look at selling up, taking the equity and paying off your debts. Then go to mortgage providers and advise them what's happened - someone legit may give you a deal, but in the meantime, rent. You'll be saving on petrol/diesel as well as your mortgage payment.

Our second current account is with the Yorkshire Bank. This account is not attached to any or our creditors. A while back, someone phoned up asking us if we wanted to change mortgage - I laughed and explained that I was collecting defaults - she said that if, in the future, they were satisfied, there was no reason why they wouldn't consider me for a mortgage. Now, she could have been talking through her bum - we haven't checked if what she said is true but I'm optimistic and pessimistic at the same time.

Are you able to do an SOA (there's a link somewhere), paying particular attention to the value of your current mortgage and what the likely value of your house is. Also, do you know what price of house you'd be looking at where you are thinking of moving to - could you get a lower value mortgage (downsize)?

Not sure if any of the above appeals or helps but it may be worth considering.

Oh, as others have said - get in touch with payplan or CCCS. Or, self administer - we went through CCCS but never actually used them - if that makes sense. It just meant that we had a CCCS reference number, could name drop them into conversations with our creditors and most (except one) accepted dealing direct with us.

Good luck.

HTH

Jim