Mortgage renewal whilst on a DMP

feester

Hello

I am just starting a DMP with CCCS and have just been browsing this site and am amazed at the amount of people in the same situation as myself, has made me feel a whole better finding this.

I was just wondering what will happen when my mortgage which is on a fixed rate until 2013 comes up for renewal, will I be able to get a new mortgage or will I have to stay with my current lender?

I am a bit concerned as I have a joint mortgage and my OH is debt free and has never had credit so concerned that it will effect our ability to re-mortgage, any advice?

Whilst he now knows about my debt (kept it a secret for ages) I don't think he really understands and definitely doesn't think it will effect him (I got my name taken off our joint account as have debts with that bank) but I know that it will as we have shared a shared financial commitment, any advice?

Many thanks

Feester.

garbaldisham

We're in much the same position, although our fixed rate ends in October, and I asked this very question elsewhere on this forum.

Basically, it seems there's little chance in the current climate that anyone on a DMP would be able to remortgage or switch lender - the latter are still very twitchy about lending to anyone, whatever they may say to the contrary: loan to value, credit score and multiples are all much tighter than they were a couple of years ago.

So at least for the moment you'll have to stay with your current lender. Bear in mind, though, that the silver lining of a DMP is that if your mortgage goes up, CCCS will adjust your repayments accordingly - the roof over your head is the number one priority. Also, provided you don't default on it your mortgage lender will happily keep taking the payments and eventually hand over the deeds - they won't suddenly decide they don't want your business anymore, and yank the rug from under your feet .

Finally, as someone sagely said to me elsewhere, after six years your credit score will reset to zero, with all infringements deleted (I'm not sure if that's within six years of the DMP starting or when - someone will be along before long that knows, though) and then you can start rebuilding your credit score, in a careful and controlled way .

I know it's a long haul, but you'll get through it - and there's so much support on these threads. Everyone knows just where you're coming from, and that's a great comfort!

feester

Many thanks for your reply, not going to worry about it now as it is a long off. Sent off my final paperwork to CCCS to start my DMP and have to say I feel alot better about things and so nice not to have the phone ringing a million times a day and avoiding calls! Thanks again and I will keep coming on here as I have found it helpful.