Debt Management Plan (DMP)
Over the last few months, we have been hearing about a lot of clients who have, or who are considering, a debt management plan (DMP), While the prospect of a single monthly payment to a debt management company who will pay your creditors for you, and who may be able to negotiate a lower settlement figure, sounds good, there are a lot of downsides to a debt management plan.
A DMP does not settle the debts on your client’s record.
A lender will very often mark a debt in a DMP as a default.
Defaults remain on your client’s credit record for longer if they are in a DMP.
Only a portion of the monthly payment actually goes to your client’s creditors.
A DMP extends the amount of time that your client cannot access High street finance for.
We believe that a secured loan is a better solution for your clients if they want to get their debts under control and clean their credit record.
Our standard secured loans lender panel will take all applicants who are considering a DMP in their standard criteria.
We can clear an existing DMP with the following criteria.
Up to 85% LTV
Rates from 9.35%
No upfront fees for your client.
Up to six months mortgage arrears.
Unlimited CCJs and Defaults.
So before you consider referring your client for a DMP or if you have a client that needs to get out of their DMP, give us a call and we will give you all the options available to you or your client so that they can get their credit record cleaned as soon as possible.
In closing I would like to wish each and every one of you a wonderful Christmas and a prosperous new year.
Ian Chambers @HoskinHomeLoans
Hoskin Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority number 613005. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
