I have a question - its a bit complicated so I appologise in advance if the post is long.
I have always rented in the past - got in cc debt and then with a suprise baby no 3 and husband having bad back and being unable to work I went into a DMP for £50000 paying £312 per month - started at £125!! That was 3 years ago (13 years to go on DMP at current levels)
Husband has gone self employed this month (after 3 years on IB) but has a variable income but sllightly better than the benefit he was on £90 pw I have good job but we have 3 children. I have been offered an interest free long term loan for a deposit on a house repayable on future bonuses' (they are not guareented but in the time scale I would expect to get them as its a small new company growing quite fast) Would be a 2nd legal charge for this money until paid up in full - effectively a similar scheme to Goverment mychoice homebuy scheme.
I have been offered a mortage (80% high int rate but only 2.5X my salary) and we have found a property that needs alot of cosmetic work (but doable by us in the long term) and is alot bigger than our current rented property ( we have to move whatever reallychildren out growing the space we have) If we went for bigger rental we are looking at £900 - £1000 pm rent mortage would be £900(repayment) per month which taking my husband money into account is do able (current rent 600 paid all by me as husbands income not taken into account for DMP as its my single DMP)
My question is what can the creditors on my DMP do? I am going to up payments to around £500 in a couple of months ( current repayments will remain the same even with increasing bills ) but can they do anything to the house ( there will be no equity at the moment but this would be our longterm family home ) plan is to pay more off plan and also maybe gain some equity in the longterm - but don;t want to make this big jump if 2 years down the line we could loose it all.
If I am made to go Bankrupt at some point in the future I would loose my job so don't want to put myself ina situation where this is a possibility.