Hi BD

If you are in a DMP unfortunately there is no guarantee that the plan will end on a specific date. From your info, DAS or Trust Deed would appear to be the obvious option. DAS would exclude the property and based on the info, Trust Deed would do the same.

If you looked at a Trust Deed as an option this would include the together loan in full, but it would have no risk to the mortgage. NRAM are fine to deal with and you would pay the mortgage as normal. You should be aware however that NRAM could pursue your partner for the full Together loan.

Mark

Hi bulldog83,

Thanks for setting out your current scenario clearly.

I am sorry to hear of your experience with the DMP. To answer your question a Trust Deed would settle the debt quicker. Depending on what your net free income is and what you could commit to it monthly will depend on the length of the Trust Deed. They can vary in length from 36-42 months. I would imagine due to the low level of debt that you have that 36 months would be more than sufficient in a TD. What are you currently paying to the DMP as it is likely that this is what you could expect to pay in the TD too!

The TD would include all current debts which are written off after the agreed term. If there is no equity in the property then the property would not take part in the Trust Deed. Plenty of firms on this site allow the property to be dealt with, without paying the £500 others charge.

Lastly, as long as you maintained the mortgage payments the Trust Deed shall have no effect on you remaining in the property so yes everything will stay the same.

If you need any further assistance please just ask.

Regards

Thanks to you for such a prompt and helpful response. At the moment I am currently repaying my DMP at £195 a month, so if could maintain the same payments and pay the debt off sooner, then the TD certainly appears to be a more a appealing option than the DMP.

I am not fully aware of the details of the DAS, so I will certainly research this further before deciding what option is best for me.

As far as the other party on the mortgage being pursued for the full together mortgage, then I worry that he would then be difficult to deal with in terms of removing his name from the mortgage once the property comes out of negative equity. He doesn't stay at or contribute to the mortgage/property any more and is, at present, more than willing to be compliant in terms of signing the property over. It's just NRAM who are refusing the change of parties due to the negative equity.

Thank you again for the helpful advice, it's greatly appreciated

Regards

BD

Hello bulldog83.

Have a read about DAS here:

https://www.trust-deed.co.uk/debt-arrangement-scheme.html

It's very similar to your DMP, but it guarantees that interest will stop and protects you from legal action.

A trust deed may clear your debts sooner, but it's a more severe process in some ways (as it's a formal insolvency). It may well be right for you if clearing your debts ASAP is the main priority, but with other considerations in mind it will certainly be worth weighing it up against DAS.