DMP Advice

CreditMonkey

We have an Abbey Mortgage £82,500 about 22yrs left
We have a secured loan £30,000 but they sold us the dreaded ppi for £10,000 (yes i know gonna send template letter) but we are supposed to get that back if we are good in 10 years...! The settlement figure because of this is about £38,500.

So £82,500 + £38,500 = £ 121,000

the house would sell at the minute for £ 135,000 ish

so about £14,000 equity.

We also have about £30,000 of unsecured debt that we are currenlty paying off on a debt managment plan with CCCS. I had my lightbulb moment and spotted trouble coming so we started this before we ever missed any payments on any debt and have never missed a priority debt payment.

We pay £630 pm mortgage and £469 pm secured loan

My question is this, I don't like the secured loan people and don't trust that they won't find some way out of paying back the £10,000. I also think that it might be best to try and get that loan put onto the mortgage to cut down the interest on the loan (12%...!).
Do you think that any mortgage company is likely to help given the DMP.

I have posted on mortgage board but without response.
Any advice very much appreciated.
:j

debrag

best to go to the mortgage company speak to them. They will work out if you can afford it etc. Do they know you are in a DMP is the loan with them as well? If it looks like you can't pay then I don't think they will. Once that is done you can sort out your DMP if it means the loan will no longer be apart of it.

Sounds like you'd have good credit just not able to meet min payments etc

CreditMonkey

The mortgage is with abbey and the loan is with paragon. Don't think abbey know we are on a DMP. My thinking is that putting the loan onto the mortgage will reduce the monthly payment. Like i say we have never missed a payment and have only defaulted on our unsecured borrowing since starting the DMP. I guess i should just ask them really but if you think they'll just say no cause of the DMP then i won't bother.

fatbelly

I would say it's worth a try. The secured loan is already over the threshold for a regulated agreement (25k) so I can't see you've got anything to lose. Have you read Martin's guide to finding the best mortgages?
http://www.moneysavingexpert.com/mortgages/remortgage-guide