DMP onto mortgage?

good_golly

I want to borrow money on my mortgage to pay off all my debt, some of which is on a DMP.

I have a mortgage with santander which is fixed until 02/2016 at 4.74%.
Their variable rate right now is the same.

My credit file is probably shocking because of the DMP, but my financial situation has improved by quite a bit since christmas.

Wondering if i stay with santander will i be able to sort a new mortgage out with them???

National_Debtline

Hello there,

The debt that you have under your DMP is unsecured, we class this debt as being a 'non-priority'. If you were to 'pay off' the debt via a new mortgage you would, in effect, be moving this debt from its current position of being unsecured to one where it is secured. You are not 'paying it off' at all. In fact, secured borrowing has greater risks as if you fall behind on the mortgage instalments you could potentially face repossession action. Mortgage arrears is a 'priority' debt. You may also end up paying more - do you know if your DMP provider has managed to get the interest and charges frozen? Also, are you using a free provider?

To answer your question, Santander may be able to remortgage - but it would be down to their regular checks, decision making and whether or not you have sufficient equity to meet their loan-to-value requirements.

Best wishes,

David @ NDL.