DMP check list and sanity check

Grumpelstiltskin

Quantumllama said:

I’m more just worried as I have a debt with them for a credit card when it comes to renewing mortgage obviously I would have defaulted on the credit card. I understand they don’t do another check. 

How many times do you need to be told there will be no problem? 

It has been explained, there will be no problem.

ManyWays

A mortgage lender like Santander literally doesnt make any checks if you just want a new fix and you dont have mortgage arrears. 

Quantumllama

Grumpelstiltskin said:

Quantumllama said:

I’m more just worried as I have a debt with them for a credit card when it comes to renewing mortgage obviously I would have defaulted on the credit card. I understand they don’t do another check. 

How many times do you need to be told there will be no problem? 

It has been explained, there will be no problem.

It’s not so much the renewing that I’m worried about. I know ultimately I will have a mortgage available with them. It’s more that I’m worried that I would have a defaulted credit card specifically with THEM. They are obviously going to know it is defaulted because it is their credit card. So when it comes to renewing even if they don’t do a credit check, which I know they don’t, they will still know I have a default credit card with THEM and therefore would they only offer SVR and no fixed rate or at least a crummy fixed rate. 

I know it seems like I’m asking the same thing multiple times but I feel like nobody is understanding what I’m asking when Ive spoke to national debt line etc. it’s probably down to my poor explanation but I hope that makes sense. 

ManyWays

they will still know I have a default credit card with THEM and therefore would they only offer SVR and no fixed rate or at least a crummy fixed rate.
No they wont. Yes, they could know that if they choose to look from one system (mortgages) to the rest of the bank. BUT THEY WONT.
New mortgage fixes are as automated as a bank can make them. You can switch to a new fix by using your phone in a 5 minute bus ride if you want; its probably better that you think a bit longer about the 2,3,5 years fixes on offer, but this can be so fast you will not believe it. 
No bank is allowed to charge a customer more on their mortgage because the customer is having difficulty paying their credit card, and it doesnt matter if the credit card is issued by the bank or a different lender.
I understand you think you have an unusual situation, but you dont. A large number of the people we see here who need a DMP or payment arrangement also owe money to their mortgage lender. If this caused difficulties, we would be warning about it and suggesting what you can do to avoid them. BUT THEY DONT CAUSE DIFFICULTIES.

Quantumllama

ManyWays said:

they will still know I have a default credit card with THEM and therefore would they only offer SVR and no fixed rate or at least a crummy fixed rate.
No they wont. Yes, they could know that if they choose to look from one system (mortgages) to the rest of the bank. BUT THEY WONT.
New mortgage fixes are as automated as a bank can make them. You can switch to a new fix by using your phone in a 5 minute bus ride if you want; its probably better that you think a bit longer about the 2,3,5 years fixes on offer, but this can be so fast you will not believe it. 
No bank is allowed to charge a customer more on their mortgage because the customer is having difficulty paying their credit card, and it doesnt matter if the credit card is issued by the bank or a different lender.
I understand you think you have an unusual situation, but you dont. A large number of the people we see here who need a DMP or payment arrangement also owe money to their mortgage lender. If this caused difficulties, we would be warning about it and suggesting what you can do to avoid them. BUT THEY DONT CAUSE DIFFICULTIES.

Duly noted. Thank you. I always planned on keeping them out my DMP but I guess I should just treat it as any other debt. 

Scarlet_to_Black

I have two credit cards and two personal loans totalling £30k with my mortgage provider. My five year fix is up in June. I’ve seen people echo the excellent advice given on this thread so many times from their experience that I’m not concerned.  

Add the credit card into the DMP or you are going to cause yourself other problems for no benefit to you.  

tigergambit

Hi Quantumllama, if it helps out your mind at rest I had a CC and overdraft with Santander (managed by Moorcroft, I think) and they settled both for under 25%. So well worth planning to F&F them. One of the better/fairer creditors to have imo.

As long as you keep paying the mortgage you will be able to roll into a new agreement but as you have a low LTV watch out for charges. You are some time away from that, however, so just concentrate on building your settlement fund. Keep your payments to creditors as low as possible and settle in for the long game. You should be able to start negotiating F&Fs around the time your current mortgage deal comes up for renewal.

Quantumllama

tigergambit said:

Hi Quantumllama, if it helps out your mind at rest I had a CC and overdraft with Santander (managed by Moorcroft, I think) and they settled both for under 25%. So well worth planning to F&F them. One of the better/fairer creditors to have imo.

As long as you keep paying the mortgage you will be able to roll into a new agreement but as you have a low LTV watch out for charges. You are some time away from that, however, so just concentrate on building your settlement fund. Keep your payments to creditors as low as possible and settle in for the long game. You should be able to start negotiating F&Fs around the time your current mortgage deal comes up for renewal.

Thank you. That is quite reassuring. I’m just going to include them in my DMP. Wish me luck. First payments being missed in the next couple days. Quite nervous. 

Rob5342

Quantumllama said:

tigergambit said:

Hi Quantumllama, if it helps out your mind at rest I had a CC and overdraft with Santander (managed by Moorcroft, I think) and they settled both for under 25%. So well worth planning to F&F them. One of the better/fairer creditors to have imo.

As long as you keep paying the mortgage you will be able to roll into a new agreement but as you have a low LTV watch out for charges. You are some time away from that, however, so just concentrate on building your settlement fund. Keep your payments to creditors as low as possible and settle in for the long game. You should be able to start negotiating F&Fs around the time your current mortgage deal comes up for renewal.

Thank you. That is quite reassuring. I’m just going to include them in my DMP. Wish me luck. First payments being missed in the next couple days. Quite nervous. 

It can seem a bit nerve wracking to start with. The thing to remember is that while it seems like a big deal to you, to them you are just another of the thousands and thousands of customers with financial difficulties that they have dealt with. They'll just sell the debt on, you'll pay what you can afford, and nobody is going to think much about you. 

backinbusiness

OP - you are overthinking this. You are one of thousands of Santander customers. Likely, your application will be reviewed by AI or an algorithm. What it won't be is reviewed by a human being who notices you've defaulted on your credit card and decides you deserve to be "punished". Treat the cc as you would any other debt and trust the advice previously given. This board know what they are talking about. Good luck. BiB x