Mortgage with CC creditor - good idea?

topcat9

Hi: first-time poster here. Lots of great advice and food for thought on this site. I plan to start a debt diary and give full SOA in a few days, but have a specific question first that I would appreciate some advice on - we currently have our mortgage, current account and a credit card with RBS (no arrears or overdraft). The fixed-rate on the mortage is about to end and we are looking at a new deal with RBS, but we are also in discussion with Payplan about a DMP which would include the credit card. I know that if we do this we will have to move our current account from RBS, but if we keep our mortgage with them does "right to offset" mean they could use our monthly mortgage payment to pay off the credit card or cause us other kinds of difficulties?

Crown

Hi and Welcome to the site,

Im pretty sure that they would not be able to take your mortgage payment and use it against the debt although there could be an issue that you knowingly accpeted the new mortgage when you knew that you were going to have a change in circumstances. I dont know if it is fraud but it is something to look into.

Have you asked Payplan there advice? I personally would try and get this sorted ASAP asonce you start talking to them your credit could become an issue very quickly. It has been advised by many people including Martin that it could be a good time to try and get a fixed rate mortgage of 3 years so you dont have the headaches of the interst rate rises.

Look forward to seeing your SOA and I wish you the best of luck with it

topcat9

Crown - thanks for your response and your welcome. I did as you suggested and checked with Payplan. They were quite clear that RBS can't touch the mortgage payment, so we're going to go ahead with them. We already have our mortgage with RBS so I can't see that we can be accused of "fraud". As our current fixed-rate deal is coming to an end, we have to move onto a new deal; we're not moving provider, asking for more money or taking out new credit (plus as it is a secured payment we will always be paying in full and mortage won't be part of DMP!)