DMP vs remortgage help please

Muhren

I am trying to decide which way is best to tackle my 19k debt. My dad has offered to remortgage a flat that he rents out in order to clear my debt which in turn I ll have to clear the increased mortgage. Or would I be better off going down the dmp route with cccs?

The mortgage would be interest only at around 5% so obviously I would be paying interest on this but there is no guarantee that my interest would be frozen via a dmp. I know that the mortgage would be a secured loan and more of a risk but I would be able to pay the interest and there is an option to overpay which I would do by roughly £200 a month. Going down the mortgage route my credit score will be less adversely affected and would also mean I'm in a better position to remortgage in march when my current fixed rate deal comes to an end.

Any advice will be much appreciated.

Hatecreditors.com

If it were me (and this is only because I have 100% had my LBM) I would go down the remortgage route as you credit file will be in tact which will prevent your own mortgage issues in the future.

However, you have to be 100% sure you have had your LBM and have no intention of racking up the debt. Please, please don’t allow your Father to remortgage and bail you out for you to just continue with credit cards etc.

I cleared all my credit cards and overdrafts with a big fat loan then racked them up again. After that, I took out an ever bigger fat loan and cleared them again. Guessed what happened to the credit cards and overdrafts, AGAIN!

It’s so easy to do and you can’t ever consider debt consolidation without having your LBM!

downsizer3

Thats a great dad you have there.
The remortgage route is certainly preferable - but make sure the interest rate is fixed for as long as you can get.
Can you be sure you'll keep to it - its a big risk for your dad if you don't? How comitted are you - can you pay a wee bit more whenever you can?

Muhren

Thanks for the advice. I know that I am very fortunate that my dad is willing to help me out in this way.

My money problems have come about as the result of gambling, which I am obtaining help for (nearly 2 weeks without a bet) and with blocking devices and other such measures I hope to overcome my addiction. If needs be I will hand control of my finances over to my dad but hope it won't come to that.

I have been backwards and forwards as to which path I should go down but I am starting to side with the remortgage option. I will try and throw everything that I can at overpaying the remortgage in order to pay it off as quickly as possible.

Hatecreditors.com

Now that you’ve mentioned gambling, I wouldn’t suggest debt consolidation. I hope you do overcome your addiction but I think it’s too much of a gamble (no pun intended) for your Dad to remortgage and leave you with available credit.

Ironically you’d be better off with a terrible credit file so credit is not readily available.

Muhren wrote: »

If needs be I will hand control of my finances over to my dad but hope it won't come to that.

You should be doing this anyway even if it hasn’t ‘come to this’.

I’ve seen it before with friends. All it takes is a bad day and it’s off to the pub and a few pints later it’s fruit machine time or a trip to the casino (if not online gaming at home).

I would seriously consider letting your Dad take control of your finances now. After help with your addiction and a few months without credit and gambling, you’ll wonder why you ever bet in the first place.

endora

Securing unsecured debts is never a good idea. In the end there isn't much creditors can do with unsecured debts, even if they were to take you to court, they couldn't get a charge on your dad's property, which is almost what you'd be doing if he remortgages to pay off your debts! :eek:

downsizer3

I'd agree that if gambling is at the heart of this I'd not let your dad go down this road. Its too vulnerable to your addiction and whilst I appreciate that you are making headway - it is an addiction and could well make a comeback - its early days.
Don't let your dad remortgage - as has been said previously - bad credit may become your friend.

orcocan

2 weeks without gambling is not that long, it's to admire that you're here seeking advice and willing to make things right but the risk of a relapse seems significant until you've proved to yourself that you are on the right track (and it's too early now). Don't let him remortgage, take full responsiblity for your situation and try to sort things out without risking your dad's assets. Best of luck!