FA's a question please:your reaction to clients entering DMP?

alarmed

Just curious but what was your reaction to finding out/their revelation to being on a debt management plan?
Realistically did you think that your client had let you down after all the research and advice you gave potentially over the years?
To be honest I'm only asking because I'm probably about to enter a DMP and I'm not really sure if my IFA who we have known for a number of years will still be able to "work" with us?especially as we are not new mortgage seekers but will of course be seeking advice from him on the best deals in the circumstances come remortgage time....

Like I say just curious
Al

Dave_Ham

I personally would forget what others think and focus on whether a DMP is the correct thing for you and maybe discuss this with your FA.

I personally deal with the harder side of mortgages and many clients are looking for alternative solutions to DMP's, coming out of a DMP/IVA etc. and never judge and am never shocked by a clients situation so just tell the truth to our FA..

Good luck

Thrugelmir

I'm not an FA. Financial difficulties can arise for all sorts of reasons. How they are dealt with is what really matters. As there's no easy answers. Though I've always helped those that want to help themselves, i.e. work hard to rebuild their situation.

alarmed

Sorry to drag this thread up again but another question please
As it seems impossible to migrate to a decent remortgage deal if you're in a DMP would I need to inform my existing lender that I am enrolled in one?

Thanks

Thrugelmir

The answer is no. Your credit record will reveal all. Even if you don't disclose it.

alarmed

Thanks. Will I be credit checked if I'm just falling into my current lenders SVR?

Thrugelmir

alarmed wrote: »

Thanks. Will I be credit checked if I'm just falling into my current lenders SVR?

No you won't. Providing you meet the monthly payments with your current lender. Then your mortgage will continue as normal.

ACG

I would be more annoyed if a client was looking to get a mortgage and neve thought to mention this.

It comes up in the factfind anyway for myself so the only way i wouldnt know about it is if the client had lied, but even if it didnt come up i would still expect the client to tell me.

As for having a DMP, you will find it very difficult to get a mortgage with one of these unless you have a large deposit (percentage wise).

alarmed

ACG wrote: »

I would be more annoyed if a client was looking to get a mortgage and neve thought to mention this.

It comes up in the factfind anyway for myself so the only way i wouldnt know about it is if the client had lied, but even if it didnt come up i would still expect the client to tell me.

As for having a DMP, you will find it very difficult to get a mortgage with one of these unless you have a large deposit (percentage wise).

That's interesting-i have around 48% LTV -is that like to be viewed favourably by mainstream lenders or would it automatically mean a specialist lender?
Thanks for the ongoing advice.

Thrugelmir

The issue is the DMP not the LTV. If you've the money to move. Then this should be used to repay your creditors.

ACG

I agree with Thrugel, if you have the money then you should be clearing your debts. Its the moral and right thing to do... lets be honest if people owed you money then you wouldnt be too impressed.

But to answer your question, if you have a DMP you can forget high street lenders for around 5-6 years AFTER the DMP has finished. At 48% LTV presuming affordability isnt an issue, then im sure there will be options.

But i would sort out your finances, either if it means arranging payment plans with the lenders directly, it gets viewed in a better light if you do it yourself (probably not to the point of a high street lender though).