Trying to remortgage with a Debt management plan

Debtdodgergirl

Hi! Just wondered if anyone had any advice on where to go to get a fixed mortgage deal when you have a Debt Management plan - and therefore have a bad credit rating. - I am with Alliance & Leicester and for the first time they will only allow me to with the Base Rate deal. - I am worried that without a fixed rate deal my mortgage will just escalate out of control. - Where do the people in debt who need a really good fixed deal go?!!

vuvuzela

Debtdodgergirl wrote: »

Hi! Just wondered if anyone had any advice on where to go to get a fixed mortgage deal when you have a Debt Management plan - and therefore have a bad credit rating. - I am with Alliance & Leicester and for the first time they will only allow me to with the Base Rate deal. - I am worried that without a fixed rate deal my mortgage will just escalate out of control. - Where do the people in debt who need a really good fixed deal go?!!

They go and see a whole of market broker.
However if you're on a DMP then your credit history will be appalling and I doubt any other mainstream lenders will want to touch you - what level of equity do you have in the house and how much 'spare' income do you have per month ?

Thrugelmir

Unfortunately your options are limited due to the lender you are with. If your financial woes are that serious. Suggest you pay a visit to the Debt Free Wannabe board. For sympathetic support and advice.

The_J

It looks like the base rate isn't going up any time soon and could go down if the Euro collapses so I wouldn't necessarily be too worried.

Dave Ham is your man for adverse credit but I do not think it is possible to remortgage whilst in the DMP. I think you need to be out of it for about 12 months - Dave can confirm.

Dave_Ham

Debtdodgergirl wrote: »

Hi! Just wondered if anyone had any advice on where to go to get a fixed mortgage deal when you have a Debt Management plan - and therefore have a bad credit rating. - I am with Alliance & Leicester and for the first time they will only allow me to with the Base Rate deal. - I am worried that without a fixed rate deal my mortgage will just escalate out of control. - Where do the people in debt who need a really good fixed deal go?!!

Hi there, typically whilst in a debt management plan you have no hope. There are circumstances when you could potentially do it, but depends upon many variables specifically loan to value ratio and the weight of credit in the plan.

Please give us a little more information and we can have a look, but do be mindful that as the chaps said this is very unlikely..

gloria22

Dave_Ham wrote: »

Hi there, typically whilst in a debt management plan you have no hope. There are circumstances when you could potentially do it, but depends upon many variables specifically loan to value ratio and the weight of credit in the plan.

Please give us a little more information and we can have a look, but do be mindful that as the chaps said this is very unlikely..

Hi Dave, Im after some advice on a mortgage whilst on a DMP too. What info do you need? Our 5 year 6% fixed rate comes to an end on 31st July!

Senior_Paper_Monitor

According to my current notes - only one lender accepting current DMP and they will not go above 60% LTV (and I seem to recall that has become 50%) - the price is such that you will almost certainly be better off on your current mortgage

gloria22

Is there any point in asking if they would borrow any extra? We are wanting to move house.

Senior_Paper_Monitor

porting/extra borrowing - both require full underwriting under present criteria so that one is going nowhere I'm afraid.

Thrugelmir

gloria22 wrote: »

Is there any point in asking if they would borrow any extra? We are wanting to move house.

If you can afford to move then clear your DMP.

As you are only prolonging your own difficulties.

gloria22

I was thinking I could clear the debt with equity from the house. I really have not got a clue what to do!