CCCS DMP and looking for a new mortgage deal

IwtbDebtfree

Hi, have posted a message in the Mortgages forum, and been pointed back here as a newbie posted who has been watching the forums for a while....!!

My question is this, I currently have an outstanding CCCS DMP, which I have been on for a couple of years, and look like I have another couple of years to go (18 months at current rates), however I am looking to try and reduce my mortgage(s) by remortgaging down to a single mortgage, which I think would then give me more a month to speed up the CCCS DMP payment plan.

However a couple of questions come up, firstly under the terms of the CCCS DMP am I even allowed to ask the mortgage advisors to review my case, as it could be deemed asking for further credit....

Secondly I am being stupid trying to do this anyway.... and lastly which I think I now the answer to, should I look to pay off the CCCS DMP plan with money added to the remortgage, in the hope that I can get full and final settlement agreements with my creditors....

Theres a lot there but any advice would be greatly welcomed...

Mike
IwtbDebtFree (I wanna be DebtFree)

olivia84

hi there,

i'm afraid i can't offer much advice but i would imagine you are very unlikely to pass a credit check for a new mortgage deal even with your current provider as they will treat it as a whole new application and you'll proably fail a credit check.

i don't suppose there's any harm in trying (apart from adding to your credit search history and that too many credit searches can adversly affect your credit rating) if you have ALOT of equity in your home they might look at it.

i don't see why the cccs would need to know about it as (unless any of your creditors have a ccj against you and then applied for an inhibition order against your home - this would probably allow them to have first dibs on any profit resulting from the sale/remorgage of your property) if you were officially bankrupt then an official receiver would need to know if you were going to do it but as far as i'm aware a DMP is a kinda informal thing between you and your creditors and although your supposed to treat them equally and fairly/let them know all your circumstances etc, it's not a legal and binding thing yet.

i'm not an expert though but that's the way i'd see it

x

eyeopener2

Hi

You have to ask yourself what you would gain by doing this.

Yes your DMP would finish earlier, your on a similar time frame to me actually, but your mortgage term would increase.

Wouldn't it be better just to sit tight, pay your DMP to the end and then use your DMP payment, or part of it, to overpay your mortgage.

You won't get a top deal on a new mortgage, even if you can get one, so I wonder if you will actually save anything. Of course its always worth asking your adviser what they can come up with, they may surprise.

I don't think re-mortgaging is in breach of your DMP erms as your not taking further credit, your just re-arranging it.

Me? I pay it off then assault the mortgage after that.

dancingfairy

I would be surprused if you could remortgage easily and cheaply to be honest. I think your best bets would be:
1) your current lender - they may be able to look at your history and make a decision based on that. and
2) consulting a mortgage broker to see who would lend to you. I think you may struggle to get anything like a sensibe rate though

In terms of adding the unsecured debt to the secured debt it is a bit of a gamble - you need to consider whther 1) anyone would consider it and 2) how much you could actually save - with another 18 months to go it might be more sensible just to carry on as you are - given that actuall you could end up paying out more over the longer term if the debt is added to the mortgage.
Best of Luck
df

IwtbDebtfree

thanks both....