DMP Mutual Support Thread - Part 12

January2015

Daffodil2018 wrote: »

Thanks for moving it over sourcrates.

I have a few dmp related questions if I may?

How does a dmp affect your mortgage? I know it impacts credit ratings, but the thought of it affecting my mortgage or home ownership terrifies me. And I think it’s putting me off doing the Dmp with SC (whose website said that’s the plan they thought would be best for my situation)
OH and I have a joint mortgage, on a shared ownership property. Our fixed rate (4.59%) ends in November, when we’ll move to svr (4.2% at the moment) unless we can get another deal (unlikely as it’s a specialist mortgage and it was 95% LTV).

Has anyone here on a dmp ever lost their home?

Our DMP has never affected our mortgage. We are not on a deal, but track at 0.5% over base rate - so for us that's a great deal at the moment However, if base rate skyrockets I will negotiate with existing lender for one of their 'deals'. I am not worried my DMP will affect it. I realise I cannot swap lenders easily - and won't bother trying to be honest, but that doesn't bother me.

On a DMP your mortgage is a priority debt (as it should be DMP or not). Because it's priority funds are allowed from your budget to pay these sort of bills before any non-priority debts. For that reason your home should be safe. I'm assuming you are not already in arrears with your mortgage - but even if you are, the arrears are a priority debt over things like loans and credit cards, so the DMP would allow for you to pay your arrears before the cards and loan. Again, this means your mortgage, and therefore your home, is safe.

Don't worry about the possibility of losing your home whilst on a DMP as long as you make your mortgage payments. The important thing to realise is that you are responsible for making your main mortgage payments even if on a DMP with the likes of Stepchange.

January2015

ploppy57 wrote: »

For those of you that have moved on to SM DMP.....did you all drop to token payments to start with?

For me...... Yes, yes, yes :j:j:j:j

Sazzie23

Daffodil2018 wrote: »

Thanks for moving it over sourcrates.

I have a few dmp related questions if I may?

How does a dmp affect your mortgage? I know it impacts credit ratings, but the thought of it affecting my mortgage or home ownership terrifies me. And I think it’s putting me off doing the Dmp with SC (whose website said that’s the plan they thought would be best for my situation)
OH and I have a joint mortgage, on a shared ownership property. Our fixed rate (4.59%) ends in November, when we’ll move to svr (4.2% at the moment) unless we can get another deal (unlikely as it’s a specialist mortgage and it was 95% LTV).

Has anyone here on a dmp ever lost their home?

Hi, just to add to the mortgage stuff, I had to remortgage on a DMP(because I'd spent the endowment money trying to pay off debt stupidly). I was unable to remortgage - despite trying everywhere - with anyone other than the existing mortgage provider, however I went into a decent fixed rate which will ask the full length of the term so I'm not unhappy. I have heard of people actually moving and getting a new mortgage with their existing provider whilst on DMP.


I have never heard of anyone in a DMP losing their house although a few choose to selll to get out of the debt, but for me it's not the solution unless you are downsizing significantly.

Saz

Suseka97

determinedtobedebtfree wrote: »

Hi all
Well! I have taken the plunge! I have 14 letters written, signed and printed waiting to go to the post office tomorrow: 1 to SC telling them I'm going self managed and 13 to my creditors explaining the same thing and offering token payments......
Thank you to everyone who has given me advice on this lately!
DTBDF x

Good for you DTBDF - sounds like you're off to a flying start! :T

System

I sent my CCA requests first class recorded last Wednesday and they still aren’t showing as delivered when I check online? Just that they have got my letters and they are being processed in the system... anyone else had this and it just took ages to update or do you think they’ve lost them?!

sourcrates

Anniee88 wrote: »

I sent my CCA requests first class recorded last Wednesday and they still aren’t showing as delivered when I check online? Just that they have got my letters and they are being processed in the system... anyone else had this and it just took ages to update or do you think they’ve lost them?!

Unlikely to get a signature for them as companies such as this have mail delivered in bulk, but you may be lucky, they should be signed for, but in reality its rare.

It depends on the delivering office, and how busy they are, or in most cases, its down to the diligence of the individual post-person.

Normally only special delivery items get to the front office of these places.

Expect an update in 24 hrs, Royal Mail`s "track an trace" isn't the best.

January2015

Anniee88 wrote: »

I sent my CCA requests first class recorded last Wednesday and they still aren’t showing as delivered when I check online? Just that they have got my letters and they are being processed in the system... anyone else had this and it just took ages to update or do you think they’ve lost them?!

I gave up sending recorded delivery letters to my creditors and DCAs.

I used to get proof of posting instead. It doesn't cost anything more than the price of the stamp to post the letter,, but you do have to queue at the post office to get this when you hand your letter over for posting.

Now - I just send the letters. No queuing at the post office - just drop them in the post box. The recipients get them - I know they do, because they respond to me. That's good enough for me

NoOneAround

January2015 wrote: »

I gave up sending recorded delivery letters to my creditors and DCAs.

I used to get proof of posting instead. It doesn't cost anything more than the price of the stamp to post the letter,, but you do have to queue at the post office to get this when you hand your letter over for posting.

Now - I just send the letters. No queuing at the post office - just drop them in the post box. The recipients get them - I know they do, because they respond to me. That's good enough for me

Great Tip - thank you Jan'15! I won't bother going to Post office today

KID77

Hi All, I feel guilty coming on here for advice as haven't been on much in last few months, life has been super busy.

Unfortunately my husband is being made redundant and I want to reduce payments to creditors to £1 each until he is in a stable job again. We are with SC and they want to do a review but I am now tempted to just go self managed. I am not sure whether to write to them all and explain situation so offer £1 per month or start with CCA requests as that puts your account on hold......what do you think?

I suppose I will have to speak to SC though to get bank details etc. I will read back process for going self managed but wanted to just get some opinions.

Thank you
KID

January2015

KID77 wrote: »

Hi All, I feel guilty coming on here for advice as haven't been on much in last few months, life has been super busy.

Unfortunately my husband is being made redundant and I want to reduce payments to creditors to £1 each until he is in a stable job again. We are with SC and they want to do a review but I am now tempted to just go self managed. I am not sure whether to write to them all and explain situation so offer £1 per month or start with CCA requests as that puts your account on hold......what do you think?

I suppose I will have to speak to SC though to get bank details etc. I will read back process for going self managed but wanted to just get some opinions.

Thank you
KID

SC will not give your creditor bank details. The details held by SC are for accounts that are specifically created for their payments. You will need to contact creditors directly yourself and ask for this information.

I would contact your creditors, advise them of your situation and request CCAs at the same time. Advise you will not be making payments for 3 months whilst you take stock of your situation and work out how it will impact financially.

Edit: don't bother with token payments