Thinking of selling our house and buying another but on DMP

TAB1981

We are currently on a DMP with CCCS , our house is roughly valued around £185k and our mortgage owed is about £127k , we are looking to move into a different area where our childrens schools are and we have seen a few houses for sale there for around £170k , would it be possible to sell our house and with the money from our house buy another house in the area we want to live , or would it be a case of having to start from scratch again with a new mortgage or is there a way they could keep our mortgage and just change it on a different property seeing as we only want an house for the same value as our current house

We have been on the DMP now for over a year , it ends in 6 years . all our payments are up to date

silvercar

Moving house means a new mortgage application - even if you are keeping the same amount with the same lender. It means paying out for a new mortgage application and valuation/survey, it also means the lender will credit check you. If the DMP has effected your credit rating then you risk being declined.

kingstreet

Posted on the M&E forum too!

Fire_Fox

Why not just sell, use the equity to settle some or all of your debts and rent a property? Home ownership is not an essential of life, it can cause a good deal of stress and means you need to find money for repairs. If you can find money for estate agents and conveyancing it would be reasonable for your creditors to wonder why you cannot pay them.

exarmydreamer

check to see if your mortgage is portable, i.e no need to remortgage if property being considered is lower in value. Then you could use the equity to either settle debts or towards removal/moving costs.

kingstreet

exarmydreamer wrote: »

check to see if your mortgage is portable, i.e no need to remortgage if property being considered is lower in value. Then you could use the equity to either settle debts or towards removal/moving costs.

A remortgage is replacing the old mortgage on one property, with a new one from a new lender. The OP is looking to move house.

Portability does not confer the right to a new mortgage, nor does it permit you to move a mortgage from one property to another.

Porting is moving the rate from an old mortgage to a new one on a new property provided the new application is approved by the lender and this is subject to the usual checks and valuation.

A mortgage is a document securing a legal charge over a particular property and it is discharged on the sale of a property and a new one drawn for the purchase of a new property.

Hope this clears up any confusion. Lenders' inability to accurately explain portability is shocking, IMHO.

dancingfairy

O.k so equity of 60k (minus selling fees). How much is your dmp for? What state were your debts in before you went on the dmp? Ie did you have loads of defaults or did you go for a dmp before it all crashed? Had the debts been sold on (or have they now?). If you had loads of defaults and were robbing Peter to pay Paul and the debts had been sold on (or have subsequently been sold on), you may have more chance of getting offers of full and final settlements on your debts. I believe some peopel have had offers accepted at around 30%.
My thoughts are (based on what Kingsteet said) to possibly sell the house, offer full and final settlements on the debts and move into rental accomodation in the area whilst saving up to buy possibly ( you would probably have to pay 6 months rent up front or come up with a guarantor as your credit rating is likely to be poor from the dmp).
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Notmyrealname

DMP and new mortgage application? Not any time in the next half decade. Even if you use the equity to pay off your debts, you'll be unable to get a mortgage for at least 2 to 3 years at the very earliest.