Hoping to end DMP,help!

livinginhope

Hi all,haven't been around in a very long time,but things are ticking along ok.100k of debt on a DMP with Payplan,been paying every month for 10 years now and never missed a payment.
My problem is my house,as it's not allowing us to save,things are getting neglected,my windows are shot and need replacing,the boiler needs replacing and basically the house needs updating,we have thought about remortgaging.House is worth around £250k,outstanding mortgage is £95k income is 50k,we thought about borrowing about £165k and trying to negotiate a full and final on the debt and hoping to have a tiny bit left to sort the house.
My question is,do we approach Payplan with our idea,or or creditors? What sort f percentage would they accept after 10 years?
We're really fed up of living with all this 😢

National_Debtline

Hi there,


I would actually suggest you approach an independent financial advisor and mortgage broker before you discuss it with Payplan. Debt consolidation is trickier than it first seems, although the defaults and 'damage' from these debts may no longer show on your credit file, they would still have to be declared when re-mortgaging and that could make it a harder process than you think (but just remember potential costs of a broker and financial advisor).

If you are successful in securing a re-mortgage offer you then need to consider the fact that you will repay more overall with interest on top of interest, plus you have taken unsecured debt and secured it on your home, which means if you ever ran into issues again, you could put your home at risk of being repossessed.

It is not to say this isn't an option, but you need to get some independent advice from a financial perspective (rather than a debt perspective) first. And if you decide to go ahead then Payplan may be able to help you with full and final offers, or you can do them yourself, as long as it is all agreed in writing.


I hate to say it, but there is an other option, and that is that it may be worth considering selling the property and using the equity to deal with the debt and get a fresh start rather than re-mortgaging the house to the max. Lots of things to consider, best of luck,


Laura
@natdebtline