is a re-mortgage possible whilst in a dmp?

c85

hi there im pretty new round here was just wondering if anybody had any idea what my chances of remortgage may be? i am currently in dmp with stepchange paying £163 month on £18,000 debt.. just over 9 years to go.. i am stuck on a variable rate on my current mortgage with santander which is 4.74% around £403 a month. There are no options for me to take a fixed deal with them at the moment which is probably because my santander overdfraft is on the dmp and defaulted.. anyways the house worth around £130,000 and mortgage outstanding is £77,000. i have a secured loan outstanding of £13000, this is £260 a month! total is £90,000 and £660 a month which leaves around £40,000 equity in the property. I just want to know if anyone knows of anywhere that would possibly let me either remortage to a fixed deal or even possibly remortgage and include my secured loan in this taking out a total mortgage of what would be £90,000 and possibly come in cheaper than £660 a month so i could put more towards my dmp? i know its probably not going to be possible but i thought the equity amount i have may help?

if anyone has any ideas or suggestions it would be appreciated cheers

maninthestreet

No new lender is likely to want to take on the debts that you have already defaulted on.

c85

maninthestreet wrote: »

No new lender is likely to want to take on the debts that you have already defaulted on.

how would they be taking on a defaulted debt?

Thrugelmir

Only real option to clear the DMP is to sell up and release the equity. Then rebuild from there.

Otherwise its a question of cutting back or finding ways to increase your income.

No easy answers.

c85

Thrugelmir wrote: »

Only real option to clear the DMP is to sell up and release the equity. Then rebuild from there.

Otherwise its a question of cutting back or finding ways to increase your income.

No easy answers.

how is this the only option? isnt my option of paying the dmp back over the 9 years and keeping my home better? isnt this why people choose dmps? i was merley looking to see if the option of a remortage was available and possibly saving on my monthly priorty expenditure therefore freeing up some extra funds for my dmp to possibly clear it quicker. As i already knew it was a longshot i was only enquiring. Guess i will just have to wait the 9 years to be debt free. Thanks anyway.

Thrugelmir

Some people choose to resolve matters quicker. Very much a personal decision. The effects of the DMP will last for some time after the debts are finally cleared.

cripes_2

I dont know if you could re mortgage and not qualified to answer but if you sold your house cleared the DMP you then probably wouldnt be able to get a mortgage for a few years... esp not on that rate.. and probably end up renting so i would avoid the advice above

As long as you can keep up the repayments I would try and stick it out and you will be in a much stronger position!! do the hard work now and have it easier later..

thats personal, i have no idea if you could remortgage!

kingstreet

Once the DMP is over, the chances of obtaining a mortgage will depend on the other damage done to your credit file, such as the visibility of defaults or judgments.

The size of the deposit, plus the visible adverse credit data will be the deciders.

A remortgage on a DMP is unlikely to be possible.

c85

cripes wrote: »

I dont know if you could re mortgage and not qualified to answer but if you sold your house cleared the DMP you then probably wouldnt be able to get a mortgage for a few years... esp not on that rate.. and probably end up renting so i would avoid the advice above

As long as you can keep up the repayments I would try and stick it out and you will be in a much stronger position!! do the hard work now and have it easier later..

thats personal, i have no idea if you could remortgage!

thanks for your comment its appreciated. im gonna stick it out its never crossed my mind to sell up at all because its not something i want to do i love my home im in and its convenient close to family friends etc. hopefully i can still get the dmp paid off sooner than 2022!

Brock_and_Roll

By any reasonable historical perspective, a mortgage rate below 5% is an absolute bargain - so for a "proven bad credit" i.e. someone on a DMP, it is the deal of the century!