Remortgaging while still in a DMP

cjwandrum

When I spoke with an advisor last month to make them aware of my forthcoming rate reduction, and my intention to overpay my mortgage, the gentleman that I spoke with was of the opinion that it was a reasonably sensible thing to do. The benefit was two fold in that my LTV would be brought down much quicker, and once there was sufficient equity in my house then the possibility existed of remortgaging and clearing the DMP much quicker with the equity from the house. The CCCS agreed that this would be much quicker to clear my debts, taking nearly 8 years off of my plan, as opposed to just increasing my payments into my plan with the excess.

The other suggestion that was made, and reasonably enough, was that the loan payment that finishes in 18 months would then be added to the DMP, thereby increasing the payment to the plan, as well as the overpayment's being made to my mortgage.

In theory that should clear my debts in a timely fashion, as well as bring my mortgage down, and allow me and my family to live in a small degree of comfort.

We have resigned ourselves to the fact that we won't get a holiday for at least the next ten years, and will just cross our fingers that our car doesn't implode in that time! The consequences of our situation I suppose, we just need to get on with it. So long as we can get ourselves sorted so that it doesn't have an adverse affect on my two children (and the baby that is due in 7 weeks), then I can't really complain.

The next post will to ask for any recommended babysitters!