Help Re: DAS (SCOTLAND)

monday_blues

Thanks Sarah, were you told anything about what would happen when your fixed rate ended, i.e. will you be able to fix again with your current lender? I have had a view different viewpoints on this and it is a big concern.

What went wrong for you? - oops, sorry just saw your other thread!

sarah1111

Haha MB just about everything, from application timing, my MA resigning, variations, revocation requests, all this stuff was completely out of my hands. Sure my situation is abnormal. Also have to say, the DAS team are very helpful (albeit quite slow to get moving).

According to my Mortgage provider at the end of my fixed rate term I will go on to the basic variable rate. At the end of anyones fixed term they go on to the variable rate which depending on who you go with is usually a couple of percent say above the BoE base rate. They aren't at the end of the day end your fixed rate period and haul it up10% just because you are in a DAS especially if you haven't missed any payments to them. It is a rubbish market out there, any they would much rather have your business than force a sale and risk negative equity and a loss of potentially thousands. TBH though the reality is you won't get a good fixed rate period again whilst you are on a DAS and potentially for some time after.

I am in a similar position....ie 9years ish. I have defaults which will last for 6years, and potentially the creditors may issue another default lasting another 6 years though after 3years these should be marked as settled and will remain for another 3 after.

I am hoping if I can find new and innovative ways of saving/making money hahaha havent yet!!!, If I can reduce the term and hopefully do a bit of damage limitation on my file it would be good though this isn't a given.....will keep you updated.xx

Miss_Poohs

My husbands credit would have been utterly trashed before entering into his DAS. We applied for and got his files last year and I have to say they made pretty harrowing reading - deffo not for the faint hearted. That said it was nothing to do with the DAS - more for his previous misdemeanors!! I think you may be restricted to your current lender once your mortgage deal is up in 6 yrs time, but I wouldn't think all would be lost.

What I would say is hubs dreadful credit history had absolutely no effect on me getting a mortgage deal.

monday_blues

Oh gosh that sounds horrendous your experience, bad luck or what? Did you go to cab or private company or council for your MA? Hopefully things will improve for you, and hope ours goes smoothly, but who knows.

Sorry for my ignorance re defaults, but how do you know you have a default already? And does it last 6 years in total or 6 years plus 3 added on = 9???

I read somewhere that the credit implications were 6 years, but when I visited the MA at the CAB, he said that it was 5 years after it ended i.e. if ours is 10 years, would be bad credit for 15 years, but dont know if that's right or not????

He also said to me that re: the mortgage, if the variable was high at the end of the fixed rate, then the DAS would be altered meaning the creditors wouldn't get their money for longer! Again, dont know if that's factual or if just a potential scenario????

It is for this reason that I was keen to try and do a single DAS in my name 13k in my name, 9k in hubbys plus joint loan 8k (2 1/2 yrs left), albeit the figures would probably be tighter in the first 2 years, but not as tight as what they are pre-DAS, and just perhaps, the lender, Santander would re-fix the mortgage as hubby not in a das, albeit financially linked to me??? I know at first glance people suggesting joint DAS but am so worried the mortgage will become a problem further down the line???

Thanks for all your advice so far, any more keep it coming haha, and good luck with your DAS.

Miss_Poohs

I think the only way to check defaults is to get a copy of your credit file - that should have the info you need.

My understanding is your credit history is affected for 5yrs after you've statisfied your creditors, so for a 10 yr DAS that would be 15 yrs in total before you could start to repair your credit.

If you were to have a change of circumstances I.e. an additional expense like a significant increase in you mortgage then you would have to contact your advisor who would go through a fresh SOA with you and apply for a variation to your DAS - meaning your creditors would receive reduced payments over a longer term.

niccatw

Hey, bit late in to your thread, but just wanted to throw something in to the mix... you said you had equity in your home. If you are planning on being there for a long time to come, would you be able to release any equity to pay off your debts? It'll extend your mortgage term but it may have less of an impact on your credit rating? And whether it's worth it might depend on how much equity you could release, whether it'll clear debts and how you feel about your home...

Just throwing it in as another avenue to explore. Perhaps some-one on the mortgages board could give you more pertinent advice - I'm certainly not an expert!

Take care.