Remortgaging with a DMP

littlun

Hi all

Just been lying awake worrying about this so thought I'd get it down here to get it off my mind (and hopefully wake up to some good advice!).

We've had a DMP for about 9 months and it's great, no complaints at all.

When we took out our mortgage 2 years ago we also took out a linked loan. The fixed term on the mortgage has now run out and although we got a new mortgage deal without any problems, it does mean the rate on the loan has gone up to over 12% (the loan runs for the full term of the mortgage, i.e. 25 years).

I think we've got enough equity in the house to remortgage and pay off the loan (the mortgage would obviously be at a much lower rate) but I'm worried about telling the mortgage company about our DMP.

Will this be a problem? Could they decide that we're a bad risk and pull our mortgage? I wouldn't be happy if they refused the remortgage because that loan is now so expensive, but what I'm more worried about is what else they could do.

Does anyone know?

Thanks so much

Littlun x

Jules

I recently tried to remortgage with a DMP and got refused by everyone, even though I have £150K equity, the only option open was a sub prime lender with higher rates, which I didn't go for.
I ended up staying with my current provider, who know about the DMP and although they won't lend me any extra are happy enough as things stand.

I think its unlikely that they would pull the mortgage, unless you stop paying they have no grounds to do this.
I don't know what to suggest about the linked loan, but I would ask them about remortgaging, the worst outcome is they say no!
The only other advice I can give is don't worry, your health and state of mind are more important.

Good Luck

littlun

Thanks, Jules.

I feel better just for getting it off my chest actually, but I don't want to risk telling them until I know for certain they won't do anything. Guess I'll have to leave things as they are for the timebeing.

Jules

Hi Littlun
Could you not ring them up anonymously and ask what their policy is in regard to your situation.
Withhold your number and don't give your name, might be worth a try.
Jules