Can having an agreement with a debt management company affect getting a remortgage?
The best answer will be given to you from the debt management company. If you are with a legitimate agency, they will want to see you succeed in the program and it'll be hard to do that if your mortgage payment is going to go up from higher interest. They will have advice for you in order to budget for the new payments so instead of going through the details with us, go back to them with your concern(s). Choosing a DMP was a wise choice but let them work with you and your budget and your creditors in order to be a success story. There is life after debt.thats a toughie
so you haven't missed a payment (yet) on your mortgage, but presumably are struggling to pay other bills. no doubt that will be on your credit record
you have a fixed rate deal that ends next year, but its a great thing you have spotted there may be a problem. I think you should talk to your lender, you should sound out other lenders. the last thing you want to be faced with is a letter from your lender saying either we cannot extend the mortgage or can but its going to be prohibitively expensive.You may well struggle to get a re-mortgage as you are on a DMP. You are likely to have received defaults on your credit file which will go against you, the negative equity is also a problem.
It would be advisable for you to look at the agreement you have in place with the DM company as its highly likely you are paying around 15 to 17 % of your monthly disposable income in fees to them for running it this money could be used to reduce your debt sooner. There are companies who offer management plans without a fee.
Call your DM company and ask them how many companies you owe have stopped adding interest and charges and ask for confirmation of this in writing if they cant or wont supply this information get out of there as quickly as you can. There are a lot of bad Financial solutions companies out there so please don't become a victim of false promises and bad service.
Sorry if this has put you on a downer and Im sure a lot of the debt management companies that offer advice on here under various names and disguises will disagree with me but I don't have any ulterior motives just hate to see good people ripped off. All the BestThe debt management plan will simply smooth things over for the short term but you need to take further action before next year to assure you are in the best possible financial position. Consider if your credit card or personal loan debts could be legally wiped out altogether. I used www.bdebtfree.info and they were a great help.
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