Remortgage while on DMP (Mortgage Prisoners?)

tp1

Hi there,

I’m pretty sure I know what the answer to this is, but I still need to ask the question.

We are currently 2 years into a £40k DMP and our current mortgage rate with Santander(!) is due to end in August. I have spoken to them already and they have given me their range of deals available to us. Obviously due to our bad credit the rates are higher, so our mortgage payments would go up by between £60 and £90 per month.

We have around 40-50% equity (the house is worth approx £215k - mortgage is £117k) and are not looking to borrow any more and there is 15 years left on the mortgage. We are both in long-term, secure employment and have 3 children with a combined salary of approx £53k.

Do we have any other options or would no lenders touch us with a barge pole?

Thanks in advance.

Pixie5740

Is your current lender's SVR lower than the new rates they are offering you?

tp1

Current lender is Santander and their SVR is 4.74% I believe.

Our current rate is 3.49% and they have offered various deals, the lowest of which is slightly below the SVR I think – but has a fee.

Sorry I have left the details at home.

kingstreet

Anything you might be offered for a remortgage is likely to be at a higher rate than 4.74%.

Westminster

Think yourself lucky you a mortgage prisoner with a lender who is still lending - we were stuck with NRAM so no new deal available for us.

Fortunately for us, this is in the past. Our situation improved markedly. DMP was cleared (partial settlements), all defaults dropped off CRA after 6 years and we are completing soon with a lovely shiny new high-street prime-rate deal.

ACG

There is only one lender I can think of that may do it at a lower rate than 4.74% but they are an adverse lender (odd isnt it when an adverse lender can offer better rates than the high street).

If im being completely honest though, im not sure I would want to leave a high street lender for an adverse lender. You will get a better rate for 2-3 years but after that you could find your stuck with the adverse lender for a while.

Thrugelmir

ACG wrote: »

(odd isnt it when an adverse lender can offer better rates than the high street).

Not if it's the lenders target market or not. There's more to running a multi billion mortgage book than simply "selling" mortgage as quickly as one can.