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Questions about dmp vs defaulting

2

Comments

  • RAS
    RAS Posts: 33,846 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    dobbysock said:
    We have a shared account (Santander) where we go half on all utilities. 

    You need to sort this out because his non-payment is wrecking your credit record, not just his. Close this account now. You need to end the financial association. Did the debt advisor not explain this?

    Then set up one in your name into which he has a standing order paid every month.
    The person who has not made a mistake, has made nothing
  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts
    RAS said:
    dobbysock said:
    We have a shared account (Santander) where we go half on all utilities. 

    You need to sort this out because his non-payment is wrecking your credit record, not just his. Close this account now. You need to end the financial association. Did the debt advisor not explain this?

    Then set up one in your name into which he has a standing order paid every month.
    But what about our shared mortgage doesn’t that financially link us anyway ?
  • ManyWays
    ManyWays Posts: 432 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    edited 2 October at 5:39PM
    Kent Reliance have signed the Mortgage Charter (https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter) so you should be able to get a new fix when your current one ends without affordability checks. A DMP does not put this mortgage at risk but means you cant remortgage with a different lender.

    Our mortgage is about to go up by approx £300 per month 
    Is that moving onto a new fix, what rate, or moving onto their Standard Variable Rate?

    Could you redo a Statement of Account with the increased mortgage amount please, using our format here which goes into more detail eg on the debts:  https://www.lemonfool.co.uk/financecalculators/soa.php 
  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts

    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 3295.47
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3295.47[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 416.7
    Secured/HP loan repayments.............. 187.00000000000006
    Rent.................................... 379
    Management charge (leasehold property).. 0
    Council tax............................. 77.5
    Electricity............................. 35
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 16.5
    Telephone (land line)................... 0
    Mobile phone............................ 47
    TV Licence.............................. 6.68
    Satellite/Cable TV...................... 0
    Internet Services....................... 14.25
    Groceries etc. ......................... 150
    Clothing................................ 50
    Petrol/diesel........................... 0
    Road tax................................ 8
    Car Insurance........................... 32
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 135
    Other child related expenses............ 25
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 5.98
    Life assurance ......................... 17.91
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 40
    Entertainment........................... 16.99
    Holiday................................. 0
    Emergency fund.......................... 0
    Ring doorbell .......................... 1.75[b]
    Total monthly expenses.................. 1762.26[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 370000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 370000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 133906...(416.7)....6.29
    Hire Purchase (HP) debt ...... 0........(187)......0[b]
    Total secured & HP debts...... 133906....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Mbna...........................8467......400.......24
    Lloyds.........................8508......380.......0
    Sainsbury......................4046......140.......0
    Sainsbury’s ...................9000......272.......0
    Virgin.........................11112.....211.......0
    Aqua ..........................1187......49........0
    Zopa...........................1000......49........0[b]
    Total unsecured debts..........43320.....1501......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,295.47
    Expenses (including HP & secured debts). 1,762.26
    Available for debt repayments........... 1,533.21
    Monthly UNsecured debt repayments....... 1,501[b]
    Amount left after debt repayments....... 32.21[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 370,000
    Total HP & Secured debt................. -133,906
    Total Unsecured debt.................... -43,320[b]
    Net Assets.............................. 192,774[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

    were not sure what the apr is for for each card/loan as when we looked on statements there were a few different aprs- none are 0%

    I have halved outgoings (utility bills) that we go half on.  I have not put my (partners) income 

    We are shared ownership so the house is worth 370,000 but we own 40% never missed mortgage payments. 
    We have contents but our service charge (included on rent) covers our buildings insurance. 

    He has a work car which he claims petrol back for and is not responsible for tax and insurance 

  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts
    ManyWays said:
    Kent Reliance have signed the Mortgage Charter () so you should be able to get a new fix when your current one ends without affordability checks. A DMP does not put this mortgage at risk but means you cant remortgage with a different lender.

    Our mortgage is about to go up by approx £300 per month 
    Is that moving onto a new fix, what rate, or moving onto their Standard Variable Rate?

    Could you redo a Statement of Account with the increased mortgage amount please, using our format here which goes into more detail eg on the debts:  
    will be on a fixed rate for 2 years at 6.29%
  • Hoenir
    Hoenir Posts: 4,553 Forumite
    1,000 Posts First Anniversary Name Dropper
    dobbysock said:
    ManyWays said:
    Kent Reliance have signed the Mortgage Charter () so you should be able to get a new fix when your current one ends without affordability checks. A DMP does not put this mortgage at risk but means you cant remortgage with a different lender.

    Our mortgage is about to go up by approx £300 per month 
    Is that moving onto a new fix, what rate, or moving onto their Standard Variable Rate?

    Could you redo a Statement of Account with the increased mortgage amount please, using our format here which goes into more detail eg on the debts:  
    will be on a fixed rate for 2 years at 6.29%
    What are Kent Reliance offering you for a 5 year fixed rate? 
  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts
    Hoenir said:
    dobbysock said:
    ManyWays said:
    Kent Reliance have signed the Mortgage Charter () so you should be able to get a new fix when your current one ends without affordability checks. A DMP does not put this mortgage at risk but means you cant remortgage with a different lender.

    Our mortgage is about to go up by approx £300 per month 
    Is that moving onto a new fix, what rate, or moving onto their Standard Variable Rate?

    Could you redo a Statement of Account with the increased mortgage amount please, using our format here which goes into more detail eg on the debts:  
    will be on a fixed rate for 2 years at 6.29%
    What are Kent Reliance offering you for a 5 year fixed rate? 
    6.19% no fee or 5.99% with 1% fee
  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts
    We each have separate accounts (both nationwide) and transfer a set amount once a month into a joint account (Santander) where all our utilities come out from. No overdraft on this account.

    Should we close the shared Santander account and have the bills come out of one of our accounts instead? we already have a financial link through the mortgage so Is there any point?
  • dobbysock
    dobbysock Posts: 14 Forumite
    10 Posts
    Any suggestions/help?
  • ManyWays
    ManyWays Posts: 432 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    what is the HP debt and when do those payments end?
    they are close to being able to manage, a lot depends on how things are split with partner. eg both spending £100 a month on gifts is well over the top. But £150 for half groceries is low and an emergency fund and household good replacement amount is needed. 
    A DMP is probably sensible, it will impact being able to remortgage with another lender but that isn't going to be possible with that amount of debt anyway and while interest is added its very difficult to reduce the card balance fast.  
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