Debt management plans

bradders00

Hi, I was on a debt management charity site which suggested a DMP to repay both my credit cards with one monthly payment which they say will take 3 years and 8months. I’m currently down hours at work and struggling with repayments and the interest at the minute. And with Covid I don’t know when things will pick up again, switching to a 0% card doesn’t seem an available option.
My worry is that I’m on a fixed rate mortgage at the minute which is due for renewal next July. Could someone explain to me if and how getting this DMP affects my chances with my mortgage renewal as I would prefer not to damage that. Many thanks

fatbelly

Late payments and defaults are what will affect your file.
If you can avoid them for the next 12 months you will ahve a better chance of a good remortgage deal.
If you can't, your mortgage just reverts to the standard variable rate - and you work around that with your non-priority debts.

sharpe106

As your mortgage reverts to the normal rate just calculate how much that more that will cost you if you can't get a new rate will give you a starting point. 

Suseka97

If it helps, I was able to switch to another fixed term (and more favourable rate) with my mortgage provider during my DMP.  All I did was apply online and the deal was done, it took no more than 10 minutes or so.  I then dropped to the SVR when that 2nd deal ended because, again, it was in my interest to do so.  

If, however, you want to change mortgage providers - then of course defaults matter.