DMP and mortgages

ferry

I'm considering a DMP after a series of life changing events recently.
I have done some research on here and understand the difficulties ahead with remortgaging when the time comes.

I wanted to know if I press ahead and enter a DMP will any reduced payments effectively be wiped out by potentially a higher mortgage payment due to not being able to secure good rates?

Might be thinking too far ahead as I don't need to think of remortgaging until next year but want to be armed in making a decision on the DMP

Thanks as usual

dancingfairy

I would imagine it would affect your chances of remortgaging. What sort of rates you would be able to get though I'm not too sure. It might be worth looking at the difference between your current rate and the SVR (I presume this is what it will revert to) as a worst case scenario. When the time comes to remortgage I guess you will need to go to a broker and discuss your situation with them and ask them where you are most likely to get accepted and what the rates are.
Can you remortgage early or is there a remortgage fee? Would it be worth doing that now and taking the fee just for peace of mind?
Also bear in mind that if you are struggling and you go onto a dmp but then your mortgage payments rise that you can adjust the dmp. Obviously this will mean it will take longer to pay off but a dmp is flexible.
Regards
df

ferry

We remortgaged about 6 months ago and should have consolidated at that point.
To do so now probably would not be cost effective due to ERP charge plus my salary situation is different

SRT81

I spoke to Natwest about our mortgage recently, looking at a possible remortgage, but their lending department told me that as long as I'm on a DMP they won't touch us.

We know an IFA and spoke to him about it, and he advised that I'd need to clear my debts and be off the DMP for about a year and then we can start looking at remortgage/new mortgage, etc.

lizzy23

you can get a decent rate with your current lender, we have been on a DMP for around 18 months, our fixed rate deal was up at christmas, i have just fixed, @ 2.4% for another 5 years with our existing lender

SRT81

Whilst on a DMP?

Who's your mortgage with?

Natwest basically told me to do one...

lizzy23

SRT81 wrote: »

Whilst on a DMP?

Who's your mortgage with?

Natwest basically told me to do one...

yep, DMP never came up as i was an existing customer no credit check required, as i wasn't wanting any further cash just to go on another fixed rate, its with the coventry building society, new rate started in December last year and is fixed until 2018

SRT81

Hmm.

Might have to get back to Natwest and see what the deal is. Maybe they have different criteria?