Best mortgage broker for someone with DMP?

Woodypuddy

Hi all, hoping someone can help with a mortgage/DMP question. 12 months since I started my DMP has given me valuable thinking time. We have enough equity in our house to pay off all our debts (55k) and still leave 85% LTV on the mortgage. We are therefore now considering downsizing our house to release the equity and pay everything off. We would not want any extra amount on our mortgage. I am aware that my mortgage provider (co-op) could (if they wanted) port my mortgage however they may not be willing to port mine due to my DMP (which is in my name only not my husbands - mortgage is joint) and that they would recheck my credit history as part of the process. Not sure whether they would even take into account the fact we wil be repaying all debt (I have never defaulted on the mortgage itself). Looking on the bleak side, assuming they won't, this would potentially mean that we would need to look at an alternative mortgage provider. Again I think this may well be limited but hopefully not non existent. I know on an earlier thread I have read that a good mortgage broker (as opposed to an estate agents one) is worth their weight in finding a deal for someone with poor credit history. My question is how do I find a good one? Never having been in this position before. Sorry for the rambling and all the ifs and buts. Just weighing up options.
Thanks all in advance

ACG

Can friends or family recommend anyone?

Thrugelmir

Speak to your lender. In instances where a borrower is downsizing. The existing lender now has a duty to assist the borrower. FOS has ruled in favour of borrowers who have attempted to port and downsize their current mortgage. The FCA has also said that the new MMR rules were never intended to block borrowers from exiting themselves from a situation of financial distress.

Dave_Ham

Firstly, there is some self help you can undertake.

Look to achieve your Experian, Equifax and call credit files in advance of chatting through with a broker. A good broker will almost immediately request these.

Have a chat with co-op as they do not deal with brokers and ask how they will treat an application to port. Reducing mortgage and loan to value should help their appetite and ability to be flexible.

There may be a timeline between now and when this plan is possible dependent upon the detail of your case.

Engage a specialist broker if possible as adverse is a tricky market if you do not do often..

Good luck

Woodypuddy

Many thanks for the replies. We don't have anyone that can recommend a broker.
We would not be looking to reduce the size of the mortgage - we would want to retain the current mortgage we have but on an alternative (cheaper) property and use the money from our current home to pay off all our debts. The money I use on the DMP though could then be used to overpay the mortgage.

I have started the ball rolling by arranging for a couple of valuations on our current home to see if it is in the price bracket we think it is.

Reading the responses above, the Co-op may (be required?) to be alittle sympathetic and may consider our plan to pay off debts?

Currently our mortgage is around 70% LTV based on our estimated valuation. When we originally got it it was 85% so that is the % I assume we have to maintain on a new property? We are also still in a fixed deal (3 years left to go) hence us thinking it is better to try and port.
thanks again

Dave_Ham

I would be surprised if the Co-Op will let you port with difficult circumstances into a position where they have less security (as your loan to value will be higher)


Start there though for sure..

Thrugelmir

Woodypuddy wrote: »

Reading the responses above, the Co-op may (be required?) to be alittle sympathetic and may consider our plan to pay off debts?

There is pressure mounting on lenders to assist borrowers in financial distress. I would add the caveat that the plan has to be credible and acceptable to both parties. So you need to be brutely honest with yourselves and be frank with the lender. Underwriters are human too and will soon spot if a plan has financial traction. A smaller mortgage reduces the lenders own exposure as well remember. For you the benefit is a fresh start. May not be your dream home but not having the stress will change your lives.