Remortgage on a dmp in order to clear debts

soonandverysoon

HI thanks for taking the time to read...


my current status is as follows: -


*I am paying £560 per month to my debts on a DMP


*My debt free date is April 2016


*Outstanding debts - £13,000 - one £1,300, one £1,300, one £10,400 - I have no other debts


*My mortgage has just under 90k left to go


*I pay £400 per month on my mortgage which is now out of the tie in period and at the lowest due to the bank of England base rate being so low... they reckon its 200 exit fees but I would dispute that if I can...


*The value of my house is between 115 to 120k - valuation today...


I am in need of transport to get to and from work not due to laziness but due to health needs and would therefore need something not massively expensive but reliable and sensible,

... I am thinking of getting a remortgage and assume id need to go to a sub prime lender to lend the money due to my credit score

... then instead of paying two debts (combings £960 per month, pay a lower amount each month but over a longer period...id pay one and be able to get back on the road

... the lower payments would then enable me to save some more in order to complete some much needed work on the house and start again.., tho I would be very cautious on lending too much as I know the property market is not totally recovered yet...


Any ideas on sub prime lenders/brokers would be helpful, any ideas/views on my possible plans/options available would be even better! Also has anyone had any experience of making offers to creditors in order to close the debts earlier? just wondering if I could lower my outgoings if the remortgage is successful... id also want the remortgage fixed so I know I can afford any repayments for the next while...


Hope this all makes sense.... my first post so please be nice! very much looking forward to hearing some sound advice, I must say this board is very impressive!

silvercar

Also has anyone had any experience of making offers to creditors in order to close the debts earlier?

I assume you mean make an offer for a full and final settlement. More likely to succeed if you can show you have no spare money and are unlikely to meet monthly repayments. the other option is to ask for a settlement figure, this could be based on the outstanding amount and will mean no future interest charges. It does depend on the structure of the loan - some don't allow for this early repayment.

If you go for a remortgage with debt consolidation, you would be asking for 103k on a valuation of 115-120k, so a LTV ratio of 86-90%. I don't know how possible this is, particularly with a poor credit rating.

Also if you have a very good mortgage deal now, you may be better off keeping it; current deals may not be so good.

Thrugelmir

Just carry on paying the DMP...

Being in a DMP will make remortgaging nigh impossible with the new changes to mortgage regulation.

amnblog

This is not going to happen.

1. You won't get the mortgage.

2. You don't want to be securing any more debt against your home.

If you are struggling, get the DMP renegotiated.

Otherwise keep paying as you are.

soonandverysoon

thank you for your responses. greatly appreciated.