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Remortgaging whilst in a debt management plan
Menace2701
Posts: 3 Newbie
I have a mortgage with the Nationwide with a balance of 78k and the value of my property is around £125k. Im currently in a debt management plan and have just under £14k to pay back. I approached the Nationwide who refused to allow me to use some equity to clear this. Does anyone know if there are any mortgage lenders who i could approach and move to as im currently paying £290/mth towards my DMP. Any advice appreciated.
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Comments
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When did you enter the dmp? It definitely is a dmp and not an iva?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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They are lenders that will consider this but not those charging the sort of rates Nationwide offer.
If the objective is to raise cash to pay off your DMP it is worth talking to a mortgage broker about your situation.
If the objective is simply to improve on your mortgage rate you will be unlucky.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yes its a debt management plan, is that not the same as an IVA? I just want to raise the £14k to clear the old debt from the plan i started just under 3yrs ago. I know the additional mortgage payments wont rise by anything close to £290/month thus making me better off and get a good credit score again.0
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There are potentially lenders who will do it then yes. As amn says rates wont be high street but they should not be too much higher.
Definitely one for a broker but should be possible.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Secured lenders may offer you an alternative. Though the interest rates will be higher than standard mortgages.
Securing debt against ones property isn't recommended. As potentially compounds issues further down the road. A determined effort to tackle the debt head on is the best way. Though this is a matter of personal choice.0 -
Thanks everyone for the advice 😊 I will source an independent advisor asap0
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