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Hi

I have today received my first default notice on my DMP. As mentioned in previous posts we are selling our house and moving to a smaller property.

I have a mortgage offer in principle for 75% LTV of the new property. How will the default notice affect this offer? Is it now null and void?

I have also discovered today that I have bank charges of £130 on my account today, even though this is included in the DMP. Any advice?

Thanks in advance.

Mel

The default could cause a problem if the mortgage company run another check. You would be better to have an actual offer rather than an agreement in principle as effectively that means very little.

Speak to your DMP company about the charges and see if they can get the account suspended and transferred to collections.

Thanks for reply.

Can I get an mortgage offer on a property that may not come to anything due to us not selling in time? We have offered on the new property and they are going to hold marketing for 8 weeks to allow us some time to sell. But we may as well call that 4 weeks once we get Christmas out of the way!

Have spoken to DMP comany many times about this creditor, they are the only ones who have not frozen interest or charges and are being very hard on us, ringing constantly and very threatening. DMP company says there is nothing they can do.

Mel

The mortgage offer would be valid for up to six months and can be extended after that. It might be best to get that offer in place before the default shows up on your credit file.

I am afraid with a debt management plan being no more than a gentleman's agreement, if you cannot persuade the creditor to remove the default then you could be stuck with it. Who is the creditor as a matter of interest?

Hi Melanie

The creditor is Barclays. I have posted a couple of times about thier telephone manner etc. I have to say it really scares me. Today I have sold my car (The kids are not looking forward to walking the 3 miles to school) so I will have some money to offer. Bit of a knee jerk reaction but couldn't think of anything else.

My husband and I really don't know where to go from here. I guess we are paniced by the whole situation having never been here before.

We want to sell the house, pay of the majority of our debts and then carry on as per the original agreements but if these defaults carry on this will make this impossible because obviously a mortgage company will look at our credit file and wonder why on earth they would lend to us because we cant pay what we have now. Does that make sense?

I don't think I have ever cried so much because we want to do the right thing just need a bit of time to get things straight. I had an excellent credit rating until August when we lost our daughter and I couldn't bring myself to go back to work at the moment but how do I get them to understand this. Barclays just do not want to listen to what I suppose they class as sob stories. Dealing with grief and debt at the same time is enough to push anyone to the limit.

Sorry to moan just at the end of my tether.

This is disgraceful behavior if they are aware of your recent history, and personally I think it gives you good grounds to present an IVA. If this means that you end up paying the debts in full, so bet it, but I feel you need the stability of knowing that they cannot get at you whilst you are trying to sell. You will incur IP fees for doing this, but they can be kept to a modest level and will be offset against the savings you make in interest. If you do not do something soon, your credit ratings could end up in a worse position - but do try and get the mortgage offer formalised as soon as you can.

Thanks Melanie and apologies for the outpouring, just sometimes can't hold it in.

Yes they are aware as we put it in our original letter to them telling them about the DMP and also have said it everytime they have called us to chase arrears but they just talk over me.

Today I asked our financial advisor to go ahead and get a mortgage offer, so fingers crossed that will happen soon and then its time to start thinking about what to do next.

I do not have a problem at all paying my debts in full, thats what I agreed to when I signed on the dotted line and that has been my intention ever since, it's just events and circumstances change.

Thanks again and sorry.

Mel

There is absolutely no need to apologise. We are all right behind you here, and wish you the very best of luck.

You have no need to apologise Mel - we all need somewhere to vent our feelings, particularly with debt, if we have no one else to talk to.

This forum is great for that and there will always be someone who can help.

Thanks for your kind words and invaluable advice. I will let you know how we get one.

Mel

one was meant to be on! lol bit early for typing.

Mel