Additional borrowing on mortgage whilst in DMP

Hear me out first because it's NOT to consolidate debt.
I started a DMP self managed. Defaults were applied in August last year. So far except for the odd email, I have heard nothing from either of my creditors. Neither have asked me to start repayments and neither have sold my debt or instructed a DCA. 
My boiler has just died, after being limped along for several years. I have no hot water. I also, sadly, do not have a big enough emergency fund to cover a replacement. 
What are the chances of my mortgage company HSBC allowing me to take out some additional borrowing to cover the work needed? Will they refuse on the basis of 2x defaults on my credit report? I have never missed a mortgage payment. I am scared to even apply. My mortgage has been in place since September 2023. There is about £60k equity in the house.
Thanks all. Major stressed as you can imagine. 

Comments

  • fatbelly
    fatbelly Posts: 22,730 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 30 May at 5:18PM
    I hope you are talking about an unsecured loan. When you already have 2x defaults I can't see you getting good offers but try

    https://www.moneysavingexpert.com/eligibility/loans-calculator/search/?featuresToEnable=needToKnowsBlock

    Would a credit card with 0% work?

    https://www.moneysavingexpert.com/eligibility/credit-cards/search/

    These are soft searches so will do no further damage

    If you are talking about a secured loan, please don't go there. Not paying unsecured debts causes no problems, as you have found. Not paying a secured loan means you lose your house

    Look we are about to enter the warmest 3 months of the year. You have time to explore other options: repair ir, replace with a used one, ask about grants, rent-a-boiler

    British gas do 3-year 0% plans. You can spread the cost over up to 10 years at the cost of some interest
  • recklessmurmur
    recklessmurmur Posts: 49 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    Thanks fatbelly. I don't get any offers which would cover the cost. I don't know the liklihood of getting approved for the British gas 0% offer. I feel like it's very slim with my credit rating so poor. 

    My thinking was an additional borrowing added to my mortgage, so yes effectively a secured loan. 

    We don't even have an electric shower sadly. If it was just heating I could cope. But with two children & no hot water, it's absolutely miserable. 
  • sourcrates
    sourcrates Posts: 31,251 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Secured loans are a terrible idea, the interest rate is often variable, and always seems to go up, never down.

    It was the straw that broke the camels back for me in 2007, when interest reverted to variable on both our then mortgage, and secured loan, upping our combined payments by over £400 per month, it was money we just did not have, and the end result was loss of our then home.

    I would never advise anyone to take out secured borrowing, so easy for things to go wrong.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • chubsta
    chubsta Posts: 489 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Can’t help with the debt stuff but I recently had a new boiler fitted by Heatable and it was very quick and far cheaper than British Gas.
    Mortgage free!
    Debt free!

    And now I am retired - all the time in the world!!
  • kimwp
    kimwp Posts: 2,736 Forumite
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    I'm sorry you're in such a horrible position. 

    As others have said, we're about to go into the warmest months, so heating shouldn't be a problem, but equally it's nice to have a shower if you've been hot and sweaty all day. If you can muddle through with basin cloth washes and using a jug to rinse hair after shampooing with just a little bit of water*, then you at least you can warm the water with water from a kettle so you're not washing in cold water. 

    *Mix the shampoo with just enough water to get a lather on your head without dripping. Then lean over the bath and rinse off just your hair.

    Is there anything you can sell to raise some money?
    It's not clear if you are making payments on your debt management plan - if so, let them know that you are pausing them until you've saved enough for the boiler.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • recklessmurmur
    recklessmurmur Posts: 49 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    Thank you all I appreciate your advice. I take on board re secured loan. 
    I will have a little apply about for a new boiler with one of the finance schemes. I feel like it's the only feasible option.
  • TheAble
    TheAble Posts: 1,675 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Isn't it the case though that additional credit is off limits when on a DMP?
  • kimwp
    kimwp Posts: 2,736 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    TheAble said:
    Isn't it the case though that additional credit is off limits when on a DMP?
    A DMP is not a formal scheme with rules. If you are doing it through Stepchange or similar, then they may have their own criteria for whether they will manage it for you.

    If the OP isn't actually making payments though, they aren't really doing a DMP,  they are just waiting out the six years for the debt to become statute barred and the defaults to drop off their credit file.

    Defaults or arrangements to pay on someone's credit history will affect credit availability.

    I wonder if waiting til September putting a year between the defaults and new application will make a difference? There's never any clear guarantees with credit application though.

    Recklessmurmer, I think it's a good idea to do your SOA and share it here, in case we can spot where you need to adjust your finances so you are not in this position again.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • fatbelly
    fatbelly Posts: 22,730 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    TheAble said:
    Isn't it the case though that additional credit is off limits when on a DMP?
    Not particularly. It may be suggested by the dmp provider if you use one, and your credit history itself may cause a problem with prospective lenders. Though I suspect a boiler installer wouldn't be too bothered.

    If you are self-managing you can make your own rules
  • ManyWays
    ManyWays Posts: 1,152 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    I started a DMP self managed. Defaults were applied in August last year. So far except for the odd email, I have heard nothing from either of my creditors. Neither have asked me to start repayments and neither have sold my debt or instructed a DCA. 
    Since then, have you managed to save up anything? If not, its a sign that you cant afford to take a secured debt, and anyway I doubt HSBC would offer you one. 

    Do you just have two creditors, or are there some other debts you are still paying? 
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