Changing Mortgage with a DMP on file

Elloyd

Hi

We are thinking of moving and have been looking at much cheaper housing.
At the moment we are just about to begin a DMP, (been holding off and holding off but cant hold off any longer)
I was just wondering if anyone has managed to change their mortgage, or get a new one, with a DMP on their credit files. or is a house move for us out of the question because of this?

Tixy

A DMP as such won't show on your credit file. But you will probably have defaults from your creditors and some may mark your file with 'AP' arrangement to pay.

Certainly having defaults will make it much harder to get a new mortgage. People do find that they are usually able to do a remortgage on their current property though don't get the best rates around.
I would imagine it may be harder to get a mortgage for a new property, especially as if you are hoping to move fairly soon as then your defaults are likely to be pretty recent.

Elloyd

We are looking at moving next year, but it all hangs on whether we can change the mortgage. If we did get one, then with the profit from the sale of the house we are in now, that would pay all our debts off, but we are still going to have a bad credit rating.
Oh, what a pickle...

Ellieseleven

We are in exactly the same position i.e. have been holding off on a DMP but now do not have a choice. We have a 4 bedroom house and there are only two of us (and the cat). At the moment we can't sell because the house prices in our area are appalling and are not selling anyway so we have no choice but to hang fire.

Under normal circumstances we would have sold the house and paid off our debts but have no clue what will happen now