Could we get a new Mortgage /partner has debt?

ALPINESURFER

Hi MSE WORLD
My partner is on a debt repayment plan to run around 8 more years
she has never had a ccj never been bankrupt and owns her own/has mortgage on house witch is in +equity
But after uni life etc was left with massive debts so this is what is being repaid not just student loans,,, That aside

We would like a bigger house and wanted to know what the chance would be of getting a bigger mortgage if i had say 20 grand to put in on top of the house with +equity

The house is in her name i am not connected or associated to her debts and i have good credit score etc etc..

Is the fact she is in debt management just mean we have no chance at all of getting a bigger mortgage ???

or are some lenders still ok with this as long as the numbers add up.. ?

has anybody in debt management gone out and got a mortgage or a bigger mortgage ?

amnblog

Depends on the LTV and other factors and she will have to clear the DMP as part of the process.

ALPINESURFER

so thats it then does the dmp have to be cleared to have a joint mortgage?

So my only way if that is true then would be to get the mortgage on my own name she could sell her house...

?

amnblog

The DMP is an arrangement to pay back debt outside of the terms of the original contracts. Put in place because the standard terms cannot be met.

You cannot expect to take on a major new debt whilst you are still 'underpaying' on your existing debt.

Some lenders wont touch the case at all with a DMP in the credit history.

In the right circumstances, with the right lender, you can clear the DMP, take a new mortgage, and move on.

Thrugelmir

ALPINESURFER wrote: »

so thats it then does the dmp have to be cleared to have a joint mortgage?

No lender is going to advance further money to an individual who cannot afford to repay what they've already borrowed.

Dragging out the DMP is of no benefit. Even if the debt is interest free. As it merely merely extends the time it will take for a credit record to be acceptable.

ALPINESURFER

So as i thought get the mortgage on my own sell her house or rent it out instead of going for a joint mortgage ...

if anybody knows anything different please let me know

cheers

Thrugelmir

Why not sell her house and settle all the debt? Otherwise she's looking at another 10 plus years.

ALPINESURFER

Well the debt is around 25 grand the + equity in the house is around 10 grand.15 grand short.if i used my money to pay it off we would have no money towards a deposit and new house etc.

All it means not going for a joint is that we cant get as bigger a mortgage as we would like.

We had looked at extending our own house to make it bigger but seemed a lot of work and better option would be to buy bigger house.


many options just working through them all