Help with DMP

Inafunk2025

Hi! 

I just need some advice from someone who has had a DMP.

I am in debt for the first time in my life and it has became unmanageable. At present I have about £16k of debt across two credit cards and one loan. My partner is not aware of the mess I have got myself in, and I know a lot of people will say I should be upfront and honest but I really want to try to deal with this without any additional stress for him.

I have been onto the stepchange website and have been advised a DMP would be the best option for me. The only thing I worry about is that my mortgage fixed term will end in August 2026 and I am scared that I will not be able to remortgage with the defaults that will be on my file due to the DMP. This is making be so stressed and anxious and I don't know where to turn. 

Does anyone have any experience of renewing a fixed term whilst on a DMP? I would be looking to go through the same provider which is Nationwide. I just don't want to press the button and start the DMP until I know how this could affect me in the future.

Any advice would be really appreciated  

Grumpelstiltskin

Is the mortgage joint? If so your partner is involved, so you either tell him or he finds out down the line when your debts have defaulted.

Mortgage no problem if you stay with same mortgage company, no credit check.

Have you stopped paying your unsecured debts and have they defaulted?

It is a mistake to jump into a DMP before they default, you can end up with your credit report being trashed for much longer.

ManyWays

A new mortgage fix from Nationwide will not be a problem in a DMP. However your partner really still needs to know

I really want to try to deal with this without any additional stress for him
You arent going to ask him to pay your debts, but its important that he knows you have them and have a plan to deal with them, because you may need to say No to something you have previously been saying yes to, holidays, plans for house renovation etc. Also he may suggest switching lender to get a better mortgage offer and in a DMP you will not be able to do that. And his credit record may be impacted as you two have a joint mortgage.

EssexHebridean

Give some thought to how his thought process is going to work if your behaviour changes. The likelihood is that he will imagine a LOT worse than a bit of debt before he finds out the truth - and he will find out eventually. Your behaviours will change too - as above, you're going to be being more cautious about spending, more thoughtful about doing things that cost money. If he doesn't know why, then his first thought is going to be to question where the money you've always had before is now going, what - or perhaps WHO - it's being spent on... 

RAS

I echo Essex's comment. I've explained to other posters that if you don't tell your partner, you will of necessity become cautious about spending, nervous about mail, shut off phone calls etc.

At least one poster confirmed that when he finally admitted debt his partner was so relieved as they'd thought he was withdrawing friends m the whole relationship. Debt was solvable.

HenryMSingh85

Some thoughts on this:

1) Many lenders (including Nationwide) offer 'product transfers' - this means you might not have to go through full affordability checks when renewing, making approval easier
2) If you keep up with your mortgage payments, that helps - lenders often prioritize your mortgage payment history over credit card / loan defaults 
3) Your DMP will look potentially better over time - if you start it now, by 2026 you'll be further into the plan, and lenders may see it as 'managed debt' rather than ongoing risk.

You could call Nationwide anonymously and ask about their stance on DMP customers at renewal. Some lenders are DMP friendly, and they may be able to reassure you that you can stay on deal without full affordability checks.

ManyWays

HenryMSingh85 said:

You could call Nationwide anonymously and ask about their stance on DMP customers at renewal. Some lenders are DMP friendly, and they may be able to reassure you that you can stay on deal without full affordability checks.

There is no need to do this. The vast majority of lenders do not do credit or affordability checks if a customer only wants a new fix, this includes all the major banks and building societies and everyone else who has signed the mortgage charter. 

The only major exceptions are mortgage prisoners, where the lender is no longer offering new fixes to anyone, and people who have mortgage arrears. 

Rob5342

My thoughts from having had a dmp for the last four years. 

1, Tell your partner. They will find out somehow eventually, for example they might fancy a new car and they'll get suspicious when you keep coming up with reasons why you can't have one. Get the inevitable over with now and then you csn work together to sort your situation oit instead of putting all your effort into hiding things from them while they keep blissfully spending money on things. I kept mine from my wife gor ages thinking it would save het stress, but actually I needed her help and it was only after telling her that I got anywhere with it.

2, Most lenders let you move to a new rate without a credit check. I have four defaults and moved to a new fixed rste with Santander with no problems at all. It took a few minutes on their website and the rates were the same they offered anyone elae.

3 Stepchange tend to rush people into DMPs which can be much worse for your credit report in the long term and leaves you without an emergency fund. Stop paying everything now, ignore your creditors completely and put your money into a savings account instead. At some point they will default you, when that has happened then start looking at making payments, either by going back to StepChange or by managing it yourself.