Dmp and mortgages HELP

Billy12345

Hi

First post here and looking for advice.

I took out a mortgage in December and moved into a new house. My mortgage is fixed for two years then goes into the variable rate. My question is that I took out a dmp in June this year due to credit card and loan debts. When my mortgage changes does Halifax do another credit search? If they do ill fail due to the dmp and what happens to the mortgage. Will I be forced to sell or sell the mortgage payments increase. I've looked at the terms and condition and it says under one of the clauses that if I voluntarily enter into an agreement for debt the mortgage becomes immediately payable. Stepchange didn't help as they said to contact the mortgage company but is rather not in case they enforce a sale. HELP

MrsTinks

If you just allow your mortgage to roll on to the variable rate then no it should all be fine. What they mortgage company cares about is that you pay THEM.
So long as you can afford to pay your mortgage then ride it out. Will your mortgage payments go up? Well that depends on the variable rate when your fixed runs out. There is a fair chance it will go up but it all depends on what your variable is set to and if the base rate goes up.

Have you worked out what it will look like now if you were on the variable rate instead and what it might look like if the base rate went up by 0.5% or even 1% as a worst case scenario?

January2015

I've posted an answer to this question, which you also posted on the DMP Mutual Support thread :beer:

Billy12345

Mrs tinks many thanks for that. I was becoming a tad paranoid thinking id lose the house and everything. Even though it says in their terms and conditions i cannot see them forcing everyone in a dmp to sell their home, it would mean no one would enter into a dmp and get into a worse situation. I can handle the payments and even the increas when the fixed rate ends. I remember my last mortgage with barclays when the fixed rate ended it just changed to a variable rate with no credit checks etc. Resting easier now.

beckstar1975

I am just coming to the end of a v large DMP and swapped my variable rate mortgage (my fixed term had ended) onto a fixed term with the same lender (Nationwide). No credit checks or anything.

From my experience many companies don't consider DMPs a debt arrangement as you have mentioned, that's for formal ones such as bankruptcy and IVA.

sammyjammy

beckstar1975 wrote: »

I am just coming to the end of a v large DMP and swapped my variable rate mortgage (my fixed term had ended) onto a fixed term with the same lender (Nationwide). No credit checks or anything.

From my experience many companies don't consider DMPs a debt arrangement as you have mentioned, that's for formal ones such as bankruptcy and IVA.

Its nto that they don't consider them, majority of mainstream lenders will allow you to move to a new mortgage deal as long as you borrow the same amount over the same term, i.e. its just a product change. They will not credit check you for this.

Obviously people would need to check with their lenders website if this is the case for them.

beckstar1975

Yes but for other things we've applied for/been involved in we've been told that a dmp is an informal arrangement that doesn't need declaring like an Iva or bankruptcy would, nothing to do with the mortgage. Payplan confirmed this to us

sammyjammy

beckstar1975 wrote: »

Yes but for other things we've applied for/been involved in we've been told that a dmp is an informal arrangement that doesn't need declaring like an Iva or bankruptcy would, nothing to do with the mortgage. Payplan confirmed this to us

I never suggested that it needed to be declared, neither did you mention declaration of debts in your post. My point was that a DMP will impact on your chances of credit if a check is done.

beckstar1975

But the OP did . . .