DMP Mutual Support Thread - Part 12

BeingDebtFreeStartsHere

Hi everyone,

Hope all is well with you all in DMP land. Ours is ticking along nicely with no major hiccups

I have a query regarding our mortgage and need some advice from you experts on here - please accept my apologies if this is not the right place to post it but it kind of links in with our DMP.

Our DMP still has 10 years to run. We are with the One Account for our mortgage (SVR paying 4.5% interest :eek:) WE are making little headroad into paying off our mortgage and owe £147,000 (house value £155,000). We feel as though by the time the mortgage term ends in 18 years we will be in negative equity as with it being a current account as well as a mortgage we used some of the equity to fund a new kitchen and conservatory way before we entered into our DMP,

Due to our credit rating now there is no chance we could negotiate a better deal on our mortgage so we were looking at different options. We have thought of potentially selling the property and renting as there is no equity in it at present and we are likely to owe at the end of the term. However, with property prices as they are now we may not get enough if we sold the property to pay off the £147,000 we currently owe. Plus would we get anyone that would allow us to rent if we are on a DMP with a poor credit rating??

Any advice would be gratefully received - just feel a bit stuck at the mo and not sure what the best solution is.

Many thanks in advance

BDFSH x

Onebrokelady

NewbieNat wrote: »

Hi
I find Capitol One very awkward to deal with. I told them I had contacted SC & didn't have my reference number. They have now written to me with their own I & E to complete within 4 weeks. Today I posted off my details to start with SC, so I'll send that I & E. They are pushing to start a payment plan with them, SC should contact them within the 4 weeks anyway. It depends how far along you are with a DMP really. Sorry I'm not much help, but they have been far more difficult than the others.

One of my creditors sent me an IE form but I ignored it and just waited for SC to get in touch with them,I phoned them all once before my DMP started and told them i was doing a plan through SC and that all the payments would now be through them and that if they had a quibble about it they could contact SC,I did have a ref number though
Just thought,if you phone SC they will tell you your reference number,5hey gave me mine over the phone before I even got my paperwork in case I needed to contact them

MK-4

carbootcrazy wrote: »

I hope all the new members of the thread who are just starting on their DMP journey have sent CCA requests to their creditors. It may confirm that some of the debts are unenforceable which means that you have a lower total debt balance than you feared:).

Just starting out but not yet done the CCA requests - thought this was for old accounts thoug, so will have a good look at this over the weekend.

Summer12

BeingDebtFreeStartsHere wrote: »

Hi everyone,

Hope all is well with you all in DMP land. Ours is ticking along nicely with no major hiccups

I have a query regarding our mortgage and need some advice from you experts on here - please accept my apologies if this is not the right place to post it but it kind of links in with our DMP.

Our DMP still has 10 years to run. We are with the One Account for our mortgage (SVR paying 4.5% interest :eek:) WE are making little headroad into paying off our mortgage and owe £147,000 (house value £155,000). We feel as though by the time the mortgage term ends in 18 years we will be in negative equity as with it being a current account as well as a mortgage we used some of the equity to fund a new kitchen and conservatory way before we entered into our DMP,

Due to our credit rating now there is no chance we could negotiate a better deal on our mortgage so we were looking at different options. We have thought of potentially selling the property and renting as there is no equity in it at present and we are likely to owe at the end of the term. However, with property prices as they are now we may not get enough if we sold the property to pay off the £147,000 we currently owe. Plus would we get anyone that would allow us to rent if we are on a DMP with a poor credit rating??

Any advice would be gratefully received - just feel a bit stuck at the mo and not sure what the best solution is.

Many thanks in advance

BDFSH x

Hi
We were renting last year and I did some research on tenants checks. I found out that the company referencing us could only look at publicly available info, so insolvencies and bankruptcy’s but not how many credit cards you had, amounts owing etc. And of course check your address/identity. It may vary from referencing company to company but I think as they are not lenders of money they cannot see everything on your credit file.

sourcrates

Summer12 wrote: »

Hi
We were renting last year and I did some research on tenants checks. I found out that the company referencing us could only look at publicly available info, so insolvencies and bankruptcy’s but not how many credit cards you had, amounts owing etc. And of course check your address/identity. It may vary from referencing company to company but I think as they are not lenders of money they cannot see everything on your credit file.

There are two checks potential landlords can do, one is a basic landlord check, which just covers publicly available information, the other, for a higher fee, is a full credit check, which would divulge everything about you.

It all depends how much the landlord is willing to part with prior to the tenency.

Summer12

sourcrates wrote: »

There are two checks potential landlords can do, one is a basic landlord check, which just covers publicly available information, the other, for a higher fee, is a full credit check, which would divulge everything about you.

It all depends how much the landlord is willing to part with prior to the tenency.

Ours obviously took the cheaper option then!

sourcrates

Summer12 wrote: »

Ours obviously took the cheaper option then!

Only £10 in it !!!

http://www.experian.co.uk/background-checking/private-landlords.html

January2015

BeingDebtFreeStartsHere wrote: »

Hi everyone,

Hope all is well with you all in DMP land. Ours is ticking along nicely with no major hiccups

I have a query regarding our mortgage and need some advice from you experts on here - please accept my apologies if this is not the right place to post it but it kind of links in with our DMP.

Our DMP still has 10 years to run. We are with the One Account for our mortgage (SVR paying 4.5% interest :eek:) WE are making little headroad into paying off our mortgage and owe £147,000 (house value £155,000). We feel as though by the time the mortgage term ends in 18 years we will be in negative equity as with it being a current account as well as a mortgage we used some of the equity to fund a new kitchen and conservatory way before we entered into our DMP,

Due to our credit rating now there is no chance we could negotiate a better deal on our mortgage so we were looking at different options. We have thought of potentially selling the property and renting as there is no equity in it at present and we are likely to owe at the end of the term. However, with property prices as they are now we may not get enough if we sold the property to pay off the £147,000 we currently owe. Plus would we get anyone that would allow us to rent if we are on a DMP with a poor credit rating??

Any advice would be gratefully received - just feel a bit stuck at the mo and not sure what the best solution is.

Many thanks in advance

BDFSH x

How much will you be paying in rent if you sell?

Thing is, you may have 18 years to go on your mortgage, but it will be paid off as you are on a repayment mortgage - and providing you do not access any of the money available through the ONE account. In 18 years you will make a last, wonderful, mortgage payment. If you move to renting, you will still be renting in 18 years, and beyond.

Regarding negative equity - in 18 years, I suspect you will not be in negative equity, but even you are, as long as you can afford your mortgage payments and you are not intending to move, negative equity is just a phrase. It only becomes an issue when folks struggle to make mortgage repayments and are forced to sell.

If it were me, I would sit tight and stay on the mortgage merry-go-round rather than helter skelter that is renting

January2015

Dandytf wrote: »

All going well I just might implement target dmp 2 year plan -though I'm a few weeks away from triggering that optionThat could reduce SC dmp from late 2022 to maybe 2020 which would be very motivational on the road to financial recovery since 2011.
Getting a bit ahead of me though working towards raising SC dmp payments to approx 200 per month or more, not going to be easy though I'm finding the idea of reducing years from dmp and excellent idea at least in mind anyway.
Maybe I'll be able to call SC End April or May to make the increase.

Great news you think you can bring your DFD forward. Why don't you think about stashing away that extra £200 pm rather than making additional payments through SC - if you do that you would quickly get together a lump sum for F&Fs. You could could work through credits offering F&Fs as you save enough. This would potentially reduce the amount you would pay and also bring forward the DFD

Together72

I’ve now applied for a basic bank account and all went through very smoothly.

My SC paperwork needs to be signed and sent off, which I will do over the weekend.

The advice and guidance on here has been wonderful.

Thank you.