Impact of DMP on credit record and mortgage offers

Heffi1

The date of default is important, i.e. you are on your DMP for 7 years, if you do not get a default at the beginning it makes it difficult once you have repaid your debt to clean up your credit file, so in this case, if the default is applied straight away, then at the end of the DMP you have paid your dues and your account is back to normal. If they decide to put a default on after 2 years then you will still be penalised long after your have finished making your repayments, so in this case it it very important that the information is correct.

Also AP markers are being used as a stick to beat you with, imagine having spent 7 years struggling to pay back what you owe, only to have to wait another 6 years before you could remortgage a house.

How is that fair.

Thrugelmir

Non payment of any debt to agreed contractual terms is a default. Whether it is registered or not. That's why being in a DMP has serious negative consequences. Speeding up repayment is the best option. Not using it as an interest free loan over the longest possible time frame. Which is why many come unstuck.

Time_to_face_the_music

Thrugelmir wrote: »

A DMP in itself will impact your ability to remortgage with mainstream lenders for some years. So the date a default was registered will have little bearing in this regard.

How will it, if there are no associated defaults?

Thrugelmir

Time_to_face_the_music wrote: »

How will it, if there are no associated defaults?

As I wrote previously.

Non payment of any debt to agreed contractual terms is a default

So by its very nature. Entering into a DMP shows a debtor has defaulted on their debts.

antonic

Of course thats presuming you want credit in the future (in any shape).

If your like me and you dont, just wait till the defaults drop off.

For me the last one will be 24/12/14.

Hopelessly_Hopeful

antonic wrote: »

Of course thats presuming you want credit in the future (in any shape).

If your like me and you dont, just wait till the defaults drop off.

For me the last one will be 24/12/14.

Thank you but the whole purpose of the thread is look at the impact on mortgage offers.

HHx

Time_to_face_the_music

Thrugelmir wrote: »

As I wrote previously.

Quote:
Non payment of any debt to agreed contractual terms is a default

So by its very nature. Entering into a DMP shows a debtor has defaulted on their debts.

I disagree, I have been on a DMP for 14 months and despite reduced payments, I have several accounts completely unsmeared on my credit record. Had I not pushed for defaults to freeze interest, there would be more like this.

Anyway I think this is OT from HH's question so will leave this discussion with you now.

antonic wrote: »

Of course thats presuming you want credit in the future (in any shape).

If your like me and you dont, just wait till the defaults drop off.

For me the last one will be 24/12/14.

Neither do I but again this is not answering HH's question.

Hopelessly_Hopeful

Thrugelmir wrote: »

As I wrote previously.



So by its very nature. Entering into a DMP shows a debtor has defaulted on their debts.

A default in principle like this is not the same as a formal default though is it?

Forgive me because I know I have asked you before but did not get an answer so please can you clarify what experience you have and if you are a financial advisor?

HHx

GibbsRule_No3

HH thanks for the new thread from a fellow paddler. I will end my dmp next year also. My predicament is slightly strange and I wonder if anyone can help. Next year I hit the big 60 and due to lucky employment that automatically enrolled a young 17 year old in a final salary scheme, no knowledge input by me, I will actually have more money spare than at anytime of my life. I won't need credit. Not likely to need a mortgage, don't drive, so no car finance but would like a credit card for booking holidays just incase anything happens and the security of booking via cc than a debit card sounds good. I am also sure that paying for something monthly on a 0% rather than paying in full (might as well have the money in an account gaining interest if I can) could work. If they do a credit check and see the amount of money would this negate the dmp markers or at least help?

Experian_company_representative

This article may provide a little more guidance, but ultimately it will be down to the lender making the assessment. A mortgage broker might be a sensible option.

http://news.payplan.com/2012/05/14/understanding-credit-reports-and-how-they-are-affected-by-dmps/

James Jones