Is there really no one lending for people in a DMP?

itsnowtime

Just had a very brief chat with London & Country and basically been told that there is no mortgage deals available at all because I'm on DMP with CCCS (even though they didn't go into any other details)

Situation....

We're looking to sell 2 properties and move into 1.

Property 1: Mortgage £127,000 with The Mortgage Works
Property 2: Mortgage £85,000 with Abbey

Purchase price of new house: £210,000 (no formal offer made)
Deposit (from sales) £52,500
Therefore 75% Mortgage required

Income - person 1: £44K (and I'm the one with the DMP)
person 2: £12K plus £5-8K in fairly regular bonus'

Just done my credit check - 684 with Experien (577 & 544 with others)

I know that we'll end up paying more but is there definitely no deals?

unite79

yes there are deals, assuming your income fits, you are correct in thinking you will pay more - I would suggest in this instance a face to face meeting with an experienced advisor, would be better than a phone call to a cattle ranch!

itsnowtime

Thank you ... now it's about finding that face to face advisor who'd be able to help.. - all the one's tied to Estate Agent's don't seem to be whole of the market - and I'm guessing that's what I'm going to need here???

Also.. my current deal is portable and I wondered whether to approach The Mortgage Works to see whether they'd consider it or not??

unite79

TMW used to have sub prime deals, alas, they no longer do, however it's worth a phone call direct, nothing ventured, and I have been suprised what lenders are doing at the moment.

Why not do a google search, with your town and mortgage advice, from there you should be able to locae an adviser who can do face to face, or there is always the yellow pages - Steer clear of TIED advisers in EAgents, you need someone who has been doing this for a few years and has teh entire market to source!

itsnowtime

Thanks for all your advise so far.. I have been working with a broker and they believe that I'd be able to get the following deals -

4.60% - Libor tracker rate, (Libor +3.30%
3% lenders arrangement fee
3 year early redemption penalties
5% overpayment allowed per annum penalty free.
Apprx £575 per month

Or...

6.0% - 2 year fixed rate,
2.5% lenders arrangement fee
2 year early redemption penalties
5% overpayment allowed per annum penalty free.
Appx £750 per month

With a 1% Arrangement Fee

Now I've never had a mortgage which has been connected to the Libor Rate - so I'm just wondering how good this is??

I'm the one causing the problems as I have defaults due to the DMP - but would be interested to hear your thoughts.