Loan to pay off DMP

pyrotekky

Hi,


I entered into a DMP c. 4 years ago (c. £50k on 4 credit cards), and now have c. £20k left to repay. I have been looking at getting a loan to pay off the o/s amount, but struggling for a couple of reasons :


1. The DMP is showing defaults on my credit history, so most lenders straight away say no. I was even declined by current mortgage lender (Santander) when I asked to add borrowing to my mortgage (frustrating as I haven't missed a mortgage payment to them for the last 11 years...!)


2. I have an additional secured loan already. I got an offer for the £20k from Freedom Finance, but they won't go as 3rd Charge on the property, so would need to lend more on top of the £20k, to include the settlement on the existing secured loan. But that meant I would pay more over the term than if I do nothing now.


What's really frustrating, is even at the point I entered into the DMP, I was still paying on time every month (just had no money left...!), and in the 23 years I have been eligible for credit, I have never missed any payments on anything. That is still the case, and unless I lose my job (unlikely in the foreseeable future) will continue to be the case.


Any suggestions for any lenders who are a) OK with DMP and/or b) willing to go 3rd charge on property and/or c) can see past the 'obvious' on the credit history and apply some common sense to the whole process i.e. understand that affordability is absolutely no issue, and 23 years of on-time payments has to say I should be considered 'no-risk'


I've got some savings, and some additional income each month (not yet disclosed to DMP), but I would rather avoid using any of that money, as it is earmarked for my daughter's university time (in 2 years), so she can come out of Uni debt free, so a simple £20k loan is not too much to ask, is it..?


Surely someone, somewhere can help...?!!

glentoran99

You are on a DMP so you should not be taking out any more credit, If your on a DMP then you aren't meeting contractual payments so affordability is most certainly an issue,

[Deleted User]

Isn't it against the terms of a DMP to take on further credit?

But regardless, a 20k loan would be anything but 'simple', even without taking your credit history into account.

Pixie5740

You've done really well to get your debt down from £50k to £20k. Keep doing whatever it is you're doing as with those defaults on your file and two loans already secured against your home, I very much doubt anyone will lend you £20k, especially £20k at a half way decent rate.

Lenders assess you on affordability and how you've managed credit in the past. They are just looking for patterns and the pattern you currently have is borrowing money and not being able to make the required repayments on time hence the defaults.

CHR15

I agree you have done really well so far but what on earth do you mean when you say you haven't missed any payments and have always been completely on top...when you are in a DMP with defaults against you?

somethingcorporate

Someone on a DMP being no risk?

I don't think you have any chance here.

Keep your head down and keep doing what you are doing.

Gaz83

pyrotekky wrote: »

a simple £20k loan

Dare I suggest this is the attitude that got you into £50k of debt in the first place?

MEM62

Assuming that all interest was frozen on the debts included in your DMP, why would you want to use a loan, on which you will pay interest, to clear the remaining balance?

foxy-stoat

Crikey, you had £50K on cards, now on £20K, you have a mortgage with an additional secured loan of £20K and your looking to get another £20K loan.....I think its time to stop thinking about loans and keep paying off your debts.

Or you could sell your home and clear everything and start again.

Good lucks

xHannahx

Possibly better off on the DMP, likely that most interest is frozen, the defaults will be gone after 6 years meaning possibly better to be on that DMP financially, and likely to pay less back overall.