Just left Debt Managment programme

emma_uk75

Hi Guys,
Just a quick question, me and my partner have recently ended our debt management program we are still in a sticky spot with debt and as he is on the current mortgage with his parents we have gone to them to suggest a further advance,
My question is that even though my other half has a very poor credit history is he likely to get the further advance, his parents have a excellent credit report and there is £60k approx equity in the house

Thanks

pure_dead_dopey

I would never think that turning unsecured debt from a DMP onto your mortgage, thereby turnig it in to secured debt is a good idea. There are other ways to deal with your debt.

emma_uk75

We have tried alot of other options before considering the further advance and the unsecured loans we could get (with a guarntor) the interest rate was 61.9%, didnt think it was hardly worth doubling the exsiting debt to pay off the first lot, with the advance the interest rate is low but it is over a longer term, we were just concerned about whether we would actually qualify, if not I dont know what we are going to do

camuk81

Have you spoken to one of the free debt management plan companies.

What happens if he is turned down?

There is no guarantee he will get accepted but they may be asked to put their own house on the line

emma_uk75

Yeah we did speak to the free companies, his parents are Mortgage free but there name is already on the mortgage with my partners as it was there house to begin with and they just put his name on it also

Magi74

pure_dead_dopey wrote: »

I would never think that turning unsecured debt from a DMP onto your mortgage, thereby turnig it in to secured debt is a good idea. There are other ways to deal with your debt.

Have to quote this - taking unsecured debt and securing it on something has potential for disaster. It also sounds like a consolidation loan to...well, not be on a DMP?

The devil is in the detail as always - but it's worth thinking about why the problems still exist. Even waiting a few months might result in better loan offers.

neverbefore2011

emma_uk75 wrote: »

his parents are Mortgage free but there name is already on the mortgage with my partners as it was there house to begin with and they just put his name on it also

To me, that sounds like a 'joint mortgage', and each name is equally liable for the entire debt

camuk81

Not only it being a mortgage it's a loan. A consolidation loan at that. A very harsh lesson here but I have to point it out 85% of consolidation loans fail.

I can totally understand you have a rough time on a DMP but please be wary. If and this will sound very negative, if you fail you may force them out their home and put their credit rating at risk.

I can understand them waiting to do this as not being too blunt it his money too, you will also need to aware of the inhertiance risks as well

MusicalLawyer

Out of curiosity, why did you leave your DMP?