Payplan DMP

GrimsbyFC

Hi, 

So I contacted pay plan because my debts amass to around 33K and I am struggling to keep onto of the monthly repayments.

We went through all my income and outgoings and they recommend me going on a DMP.

We worked out I would pay £591 a month and it would last 4 years 7 months ish.

Our fixed mortgage is going to end December 31st, but we also have a help to buy to pay off.

If I go ahead with the DMP with pay plan will the debts default after a while? 

Secondly what's it's like getting a remortgage during a DMP and what are the interest rates like?

Any guidance would be appreciated.

sourcrates

There is no rush here, the debt collection process works very, very slowly, take your time and make an informed decision after doing as much research as possible.

Its best to have as many accounts defaulted as possible first, and you will need to save an emergency fund as well.

Re-mortgaging with your current lender requires no further credit checks, if you go elsewhere, it does.

We recommend stopping payments for 6/8 months and then see how the land lies.

GrimsbyFC

Hi sourcrates 

So thank you for your reply.

Would you advise not to go ahead with the DMP with pay plan as my debts wouldn't default?

The plan with pay plan would allow me to save a fund as we worked out what I would need for car maintenance, household expenses etc.

RAS

What exactly do you mean about "a help to buy to pay off"?

Have you been in to your mortgage account to check with your current mortgage provider to see what deals they currently offer? And when you can sign up for a new fix?

GrimsbyFC

RAS said:

What exactly do you mean about "a help to buy to pay off"?

Have you been in to your mortgage account to check with your current mortgage provider to see what deals they currently offer? And when you can sign up for a new fix?

So when we bought our first home, the government gave us a loan of 20% (helptobuy scheme) of the value of the house which equates to 29K, we then took a mortgage out to fund the rest. After the end of year 6 which is June 2026 we will start having to  paying interest on that government loan so the idea is you remortgage for say 130K and pay off the 29K.

it will give us new rates to stay with Halifax but nothing on remortgaging.

ManyWays

It isnt likely that any mortgage lender will want to give you a larger mortgage, when paying the current one has resulted in you getting 33k of debt. it doesnt matter whether the debts are defaulted or not, a large remortgage just isnt going to happen.

So you need a plan that will let you get a new fix from the Halifax (that's fine after payments arrangements, defaults or in a DMP) and also start paying the government their interest on the 25% (this will mean reducing the payments to your other debts, eg to a DMP).

Whether the defaults default in a Payplan DMP is irrelevant to the mortgage situation. 

GrimsbyFC

ManyWays said:

It isnt likely that any mortgage lender will want to give you a larger mortgage, when paying the current one has resulted in you getting 33k of debt. it doesnt matter whether the debts are defaulted or not, a large remortgage just isnt going to happen.

So you need a plan that will let you get a new fix from the Halifax (that's fine after payments arrangements, defaults or in a DMP) and also start paying the government their interest on the 25% (this will mean reducing the payments to your other debts, eg to a DMP).

Whether the defaults default in a Payplan DMP is irrelevant to the mortgage situation. 

I understand the mortgage situation will not happen so it's best to change to a new rate with Halifax for a fixed period and pay the interest on the help to buy.

Would you advise me to go ahead with the DMP with pay plan?

ManyWays

I don't know, could you post a Statement of Affairs with what you think you are spending at the moment, and the including the lenders names? https://www.stoozing.com/soa.php

RAS

Please name the lenders as some are more amenable than other, the APR with the end dates for any deals and the end date for loans.