Does DMP affect mortgage

System

This discussion was created from comments split from: Struggling with debt? Ask a stepchange debt adviser a question.

booandboo

Does a DMP affect a mortgage, I have credit cards I need to pay but just cannot. Im afraid it will affect our mortgage. The kids and their dad lives here too, Can I be forced to sell the house?

sourcrates

No, is the short answer, as long as you keep up with the mortgage payments anyway.

Credit cards are unsecured borrowing, and classed as non priority debt.

Theoretically there is an extremely remote possibility that a creditor could take action through the courts, and obtain a charging order on the property (restriction if jointly owned) but as long as payments to that judgement were maintained, no further action would occur.

If a family are living in the property, an order for sale would never be granted, they are so rare these days, they stopped maintaining official figures for them in 2019.

A court would look at every other available option before even considering the sale of the house.

I must stress, this is what a creditor could do, the mechanisms do exist, but in practice it just won`t happen.

RAS

What sourcrates says. Things have changed a lot in the last two decades, particularly in the last 10 years.

The important thing going forward is that you will need to renew your mortgage with the current provider, not try to re-mortgage.

That takes 5 minutes on-line and does not require a credit check.

booandboo

Thankyou both so much, I feel a bit of hope

RAS

Good, try to relax and a Statement of Affairs (budget) would help us help you more. Try lemonfool.co.uk.

Rob5342

booandboo said:

Thankyou both so much, I feel a bit of hope

I was apprehensive about starting my dmp but it's all gone very smoothly and nothing that i was worried about happened. Looking back I just wish I had started it a lot sooner. 

DankVielen

Rob5342 said:

booandboo said:

Thankyou both so much, I feel a bit of hope

I was apprehensive about starting my dmp but it's all gone very smoothly and nothing that i was worried about happened. Looking back I just wish I had started it a lot sooner. 

Amen to that! Years sooner for me!