help please

worrybegone

Hi there im in a mess we are currently on a dmp with stepchange ,and that's fine, we are self employed both 55 our mortgage is with the Woolwich and is paid in approx. 2 years the only problem is we have a reserve mortgage that has a 43,000 reserve and I don't know how we are going to pay it before the mortgage finishes are we going to lose our home ive posted this in mortgages too

Murphy2011

Didn't want to read and run, sorry to hear you are struggling, I would have a chat with SC as usually your mortgage is considered to be a priority debt and I'm sure they will suggest dropping your DMP payment to be able to get your reserve repaid.

I'm sure they can help, please don't worry yourself too much, it will be sortable!

worrybegone

Thank you Murphy x

rising_from_the_ashes

Sorry i've not heard of reserve mortgages before I googled it but couldn't find any clear info - can you explain what it is?

I'm aware of reverse mortgages but these are usually payable at a certain point (eg if the house is sold / an older person dies etc)


How were you planning to pay off the reserve mortgage - is it something like an endowment where you have something separate to cover it?

worrybegone

Hi there its where you have like a loan pot there and I have dipped in and used it over the years thinking I would put it back , they don't offer them now so even though my monthly payments are up to date im in a deep load of debt with m y reserve

rising_from_the_ashes

Ahhhhh there's a reserve limit on my bank account (which I've thankfully not used for a very long time as the charges are hideous on it!) - it must be something similar (sorry feel like an idiot that I didn't think of that! )

I assume it has to be paid in full when the mortgage expires then?

Are SC aware of it?

If it's secured and basically just really an addition to your mortgage I'm surprised it's not been included as a priority debt - do have a chat with them

worrybegone

Stupidly I never thought to mention that when we took out the dmp how thick am I ,feel like a right fool now do you think they will be able to help ?

rising_from_the_ashes

I don't see why not - TBH I'm a bit surprised your mortgage lender didn't mention it as they must obviously be aware of the dmp ....

Phone SC asap - the quicker you do it, the quicker they can help

worrybegone

Hi Rfta we have never missed a payment or even been late with a mortgage payment, to be honest even though we have debts with Barclays and they are part of the Woolwich I don't think they are aware of dmp and when stepchange asked is mortgage up to date I just thought they meant payments ,I did have my head in the sand hoping it would all go away ,and I suppose its time to get it sorted thanks for reaching out xx

rising_from_the_ashes

Good luck - keep popping back as the support here is great & there's always someone who's been through what you're going through

Sazzie23

Hi worry

I went into a DMP without mentioning that I had spend the endowment fund which was supposed to repay the mortgage, no one ever asked about it until the mortgage people said 'hello - payment due' so I understand what you must be going through, I though I'll just remortgage - sadly no one would look at me due to DMP and credit rating, however the existing mortgage co remortgage it, at a lower cost than original mortgage and I'll have paid it off about the same time as DMP, so it's doable. I was too scared to fess up on the phone, so I wrote to them with an offer, they put it on hold for a couple of months while we sorted it out.,

Maybe you'll have to work a little longer to repay...better than worrying about not paying it.