Mortgage while on DMP?

TWINKLE

Hi - I haven't been on the site in a while, but thought it would be the best place to get some advice. My husband and I have seen a house in another area where you get more house for your money. This would reduce our mortgage payments by aprox £200 per month. The problem is I am on a DMP at the moment with £11000 outstanding. I would like to see my house and pay off the amount owed on the DMP. I would then require a mortgage for s lesser amount for another house - does anyone know if this would be possible and if any lenders would be even interested with a DMP in place. Apparently our outgoings would be adequate for the new mortgage. Any help appreciated!:p

poppy10_2

How much equity do you have in your current property?

Radiantsoul

It is hard to tell without some figures, but being on a DMP is not really going to help you to get a mortgage and it is probably a question for a mortgage broker.

Conrad

It is unlikely any high street lender will take your case. Possibly a couple of fringe lenders might take it, but you will need anywhere bewteen 25 - 50% deposit depending on the exact particulars of your application.

Fundamentaly the issue is FSA regulation. Even though less than 1% of owners are ever repo'd, regulation has recently become so tight that it ties lenders hands behind them so making nit very difficult to justify lending to anyone where a higher risk is percieved.
It's actualy a time bomb simmering away what with millions of hitherto capable people now barred from a mortgage. Before someone jumps on this keep in mind 99% of homeowners DO NOT get repossessed, so it's hard to justify the over tightening of regulation.

As ever no one in Government or at the FSA is aware of the sclae of the porblem and the fact millions are now forced to rent.

CloudCuckooLand

Conrad, I'm not sure is it just the house/lender/repossession side that should be considered.

The DMP has put in place agreements with creditors. Might those creditors not be entitled to say "hang on, we believed the SOA - which said they spent £Xxx on housing, if they can cut that by £200 we want our share of that spare cash"...

I'm no expert on DMPs, but thought I had read that a DMP requires the person not to obtain any fresh credit arrangements...precisely because the creditors could tear up the DMP...

Which, when you bear in mind the costs of selling and buying, is pretty fair - it could easily be £3k+, yet the OP is only saving £200 a month after its done...something isn't right about spending thousands to save hundreds, while creditors are made to wait for years...

TWINKLE

poppy10 wrote: »

How much equity do you have in your current property?

I have approximately £15,000 equity.

TWINKLE

CloudCuckooLand wrote: »

Conrad, I'm not sure is it just the house/lender/repossession side that should be considered.

The DMP has put in place agreements with creditors. Might those creditors not be entitled to say "hang on, we believed the SOA - which said they spent £Xxx on housing, if they can cut that by £200 we want our share of that spare cash"...

I'm no expert on DMPs, but thought I had read that a DMP requires the person not to obtain any fresh credit arrangements...precisely because the creditors could tear up the DMP...

Which, when you bear in mind the costs of selling and buying, is pretty fair - it could easily be £3k+, yet the OP is only saving £200 a month after its done...something isn't right about spending thousands to save hundreds, while creditors are made to wait for years...

Sorry - I should have made it clear that I would only move house if I was able to clear the DMP (now owing approx £10,000) from the equity of the house.

andrewsheff11

Hi

I think the best advice in this case is firstly go and get a copy of your credit file which costs £2. A DMP in itself will not affect your credit file , it’s the individual lenders responses to the informal agreements you have with them through the DMP (e.g. many will mark your file ‘Agreement to Pay’ or may even Default you). This will be detailed in the credit Report. Then you need to get in touch with a whole of market broker as products and their availability are changing all the time and they will pretty much know right away what chance you have by looking at your credit report and if you have any chance at all they will know which lenders will be the best bet.