remortgage options when on a dmp

flossieflipflop

Hi,

Sorry if this has been asked a thousand times before but just wanted to see if anyone has any advice they can offer. apologies this is quite long winded....

We currently own a house which we bought for £134k (asking price was £149k). Our mortgage is currently £85k. No houses have sold in the last 4 years on our road so not really sure what our house is worth but we guess it would go on market around £130k and we would probably get £120k (though this is obviously guess work).
I am currently in a dmp after a reckless few years. I have been in the dmp for almost 4 years and have managed to clear 50% of my debt and now owe about £9k. I have been really sensible with my money since and we have never missed/been late with a mortgage payment.

We have a young child and would love another but I think our 2 bedroom house is just too small for a growing family it is also not a very child friendly house.

Ideally I aim to clear the remaining debt on my dmp in the next 2 years so we can then start afresh but I have a couple of queries:

If I do manage to clear my debts in 2 years there will obviously be defaults (3 of them) still on my file (no CCJ's) will this drastically affect our chances of increasing the mortgage - we would prob want to increase our mortgage to about £130k to get a bigger house. (we have a household income of £47k)

If I don't manage to clear my debts is a mortgage even possible? I've seen companies on line who can remortage you in your current place to pay off your dmp and then after a couple of years you should be able to get a better mortgage but is this just spiel?

We're putting off another baby until we are in a bigger house but my body clock and broodiness are ticking away!

Is it worth me seeing a broker or will they laugh in my face for even thinking of increasing our mortgage when we are in debt (though we would pay off debt using equity when we sold but would obviously have less of a deposit and the dmp would still be on records as would default while we applied for new mortgage.

Does any of the above make any sense???

Basically:
Can I remortgage in my current situation (still in dmp)?
Can I increase my mortgage to move house while still on dmp? (though would pay it off after proceeds of sale)
Can i increase mortgage in next 2 years (if DMP paid off but defaults still on file?)

Sorry for essay and hope it makes sense I'm just trying to work out whether it is even feasible for us to move in near future. If not we will obviously just have to wait until we have cleared the dmp and been clear for 6 years

Thanks

Meeper

Very similar to a situation I had recently.

Your responses to the questions at the end are:
You may be able to re-mortgage with a DMP, but only at low LTV levels (less than 70%), so you may have a shot.
Same applies to question 2.
Same applies to question 3.

You should go to see a mortgage adviser, who will be able to better assist based on all of your personal details.