DMP’s.. future mortgages, looking for a bit of advice!

Hopingforanewstart

Hi all,
long story short.. I have personal debts of around £45k, accumulated over many years due to poor mental health/illness and how it affects my money management. It was bearable for a time, but due to my health and also my daughters I have had to reduce my work considerably.. and now I’m in a mess.

my husband is the polar opposite, he earns double what I do (with even more in the future potentially) and has zero debt. 

All of my debt is my own doing, I have nothing to show for it. Impulsivity in times of mania and emotional spending means I have no assets other than our shared home.

in light of all of this, I’ve got in touch with PayPal today and entered all my info in the view of possibly getting a DMP. I’ve contacted some creditors regarding potential write offs due to mental health, and have provided evidence etc,but I’m being realistic in that this may not actually happen.


I wanted to ask with DMP’s, particularly in relation to mortgages.. can you possibly move house whilst in a DMP?

we won’t move for at least 2 years.. but my husbands income may likely double in this time (so his income would be 4 times mine). 

It’d work out ultimately that he would pay the whole mortgage, his affordability and debt to income would more than cover the whole household costs. 

I’m wanting to sort these debts out alone- he’s done enough to support me over the years. But we would want to keep a property in both of our names.


is this going to be possible?? I know an IVA route would probably kill all chances.. but are DMP’s more ‘acceptable’ especially with my husband being a high earner?

Grumpelstiltskin

Forget an IVA.

A quick question, do you have any joint accounts with your husband?

Hopingforanewstart

Grumpelstiltskin said:

Forget an IVA.

A quick question, do you have any joint accounts with your husband?

We have a joint account that we both transfer an amount to for household things with Barclays, I don’t owe them anything at all though in any way.

fatbelly

You'd be best to separate your finances. A joint account will mean that he is financially linked to you on his credit file, and you will be getting defaults if you go for a dmp.

It's Payplan.

How much per month will you be paying into the dmp?

sourcrates

The thing is if you enter debt management you are going to default on your credit agreements, like it or not, normally its a good thing for the debtor, as it gives a clear 6 year time scale till the negative information drops off your credit file, however, if you have a joint account with your husband, then its likely to reflect on his credit worthiness as well, which won`t be good for him.

If you are to go down this route, the joint account should either be in his name only, with you removed, or closed altogether.

Hopingforanewstart

Ok that makes sense, what if the account has no overdraft would it still apply? I just want to try to protect him as much as a can whilst trying ‘future proof’ everything too…

im still going through the budget process with payplan at the moment so I’m not 100% sure as yet what I’ll be paying in.

sourcrates

Hopingforanewstart said:

Ok that makes sense, what if the account has no overdraft would it still apply? I just want to try to protect him as much as a can whilst trying ‘future proof’ everything too…

im still going through the budget process with payplan at the moment so I’m not 100% sure as yet what I’ll be paying in.

Makes no difference, its the financial link between yourselves, that will create the problem.

Its all good as long as both your financial behaviour remains good, but if one slips, then it affects the other.

sammyjammy

Surely a joint mortgage which presumably OP already has will still mean a financial ink....

Hopingforanewstart

sammyjammy said:

Surely a joint mortgage which presumably OP already has will still mean a financial ink....

Yes we do..! I’ve been reading a few different threads of people in similar situations and bank account seems to be the main focus.. or is it a case of minimising the links..? To take me off the mortgage also I’m thinking would be expensive?