How will a debt solution affect my home?
For lots of people who are in debt, protecting their house and their mortgage is a huge concern. By taking out a workable debt solution – like a Debt Arrangement Scheme (DAS) – you can protect your home and mortgage from unsecured creditors.
I own my home; how will a debt solution affect my mortgage?
As long as you keep up your mortgage repayments, your DAS shouldn’t have any effect on your ability to keep possession of your house.
Mortgage payments are viewed as priority payments because the consequences of not paying them on time and in full every month can be severe. As a result, they’re included in your outgoings before we work out your disposable income and what you can afford to pay towards whichever workable debt solution that we recommend for your individual circumstances – this makes sure that you won’t miss any of your mortgage payments and risk losing your house.
If you apply for a Debt Payment Programme (DPP) using the DAS scheme, then you’re not required to release any equity or sell any assets; a massive advantage if you have equity to protect.
You do need to ensure you continue to pay your mortgage payments as usual, though, as it won’t be included in your DPP – it is, however, included in your income and expenditure assessment as an essential/priority expenditure.