Fixed rate ending and on DMP, what to do?

Catherinewill

Hi, my current mortgage provider have written today to advise that the two year fixed deal is ending. The rate was 5.29% and will now revert to their variable rate of 5.69% increasing the monthly payment by £13.00. This mortgage is in my sole name, however I am now married. We have currently been on a DMP for 12 months and doing well, hoping to pay off our debts of £19000 within the next 3-4 years. The house is valued at £87500 and owe £57000 approx on the repayment mortgage with Leeds BS. There are 9 years left on the mortgage.

Our joint salary before CSA, pensions etc is £42000. We are both in full time employment, but due to the DMP we have defaults and therefore no credit.

Do I stick with current deal? Call them and tell them I'm married etc and about the DMP and see what they say? Do I contact a broker? Any advice would really be appreciated. Thanks.

ACG

Whilst your in a DMP i dont think lenders will be able to offer you anything better than what your on.

Speak to leeds though, ask what retention products they have. There may be some on deals better than the standard rate.

~Beanie~

You won't be able to re-mortgage elsewhere whilst on a DMP and have defaults. You can contact your current lender and see what other deals they can offer you. As long as you don't want to borrow any extra, they won't credit score you again.

Catherinewill

Thanks guys. I definitely don't want to borrow any more! I was worried about any consequences if I advise them of DMP or if they do a credit check.

So, there is no point in contacting a broker. I have heard of some mortgages with higher interest rates being available if you have bad credit etc.

We have equity in the house which would pay off our debts but I realise its not that easy...we messed up and now paying he price.

ACG

There are deals available for people with bad credit - but that wont help you, unless you want to pay more? :-P

Your only real option is to see what leeds will offer you or stick on the standard rate. There should be no issues as you are keeping to the terms of your contract with them.