Remortgage AFTER completing DMP

LadyJ2308

Hi all. Looking for a little help here.

In 2006 I started a debt management plan. I'd accrued somewhere in the region of 8k in debts and I wanted to do the responsible thing, pay them off, learn my lesson etc.
I completed this plan Aug 2014. Yay!

My mortgage is currently with NRAM who were nationalised in 2008. My fixed term is ending shortly and I don't want the uncertainty of a variable rate but NRAM can't offer me any more deals, so I have to find a new mortgage provider.

Between various sources of income (granted it includes tax credits, child benefit, child maintenance and DLA - for my child, not me) including my part time earnings, I receive around £1900 every 4 weeks. My outgoings including my current mortgage (and being generous) come to £1300 at the most.

My current mortgage is at £35k but my home is worth £80-90k. I want to remortgage at £43k so I can replace windows doors etc.

Because of my DMP, even though it was completed a year ago, I'm having phenomenal difficulties finding a lender who'll even entertain me, despite having a reasonably low LTV and a generous disposable income.

Can anyone offer any advice on what I should do to resolve this?

ACG

I dont think its necessarily just the DMP.
If a large part of your income is made up benefits and tax credits, that could also be a problem for some lenders.

I would be surprised if there is not a lender for this at relatively normal (if not normal) rates. Find a broker and I am sure there will be some options for you.

LadyJ2308

Even based on my part time wage alone, most calculators show I COULD get up to £36-50k based on my pre tax figure of £11k. I doubt the benefits are really the problem?

HappyMJ

LadyJ2308 wrote: »

Even based on my part time wage alone, most calculators show I COULD get up to £36-50k based on my pre tax figure of £11k. I doubt the benefits are really the problem?

Have all the defaults from the DMP come off your credit report?

They should have been removed 6 years after the last account went into default.

LadyJ2308

In fact, while discussing a remortgage with a rep from santander, he was certain they'd have something for me and suggested I visit the branch with all my paperwork.... Until I mentioned the DMP at which point he backtracked and said santander have a policy of not lending to anyone who's EVER had DMP... Period.

LadyJ2308

Last time I checked my credit report, it all looked ok. Score was still pretty low but as I was maintaining the new agreed payments, there weren't really any defaults. I started the plan in 2006 so they should all definitely be gone by now.
I remember an old mobile phone account I had was showing on there with a balance outstanding although I'd cleared it and had a letter to confirm, and it was eventually removed altogether but surely that wouldn't do THAT much damage?

HappyMJ

LadyJ2308 wrote: »

Last time I checked my credit report, it all looked ok. Score was still pretty low but as I was maintaining the new agreed payments, there weren't really any defaults. I started the plan in 2006 so they should all definitely be gone by now.
I remember an old mobile phone account I had was showing on there with a balance outstanding although I'd cleared it and had a letter to confirm, and it was eventually removed altogether but surely that wouldn't do THAT much damage?

If it doesn't appear then there is no damage at all.

Do you have any credit at all? Maybe a credit card that you are using and paying in full each month. Even though you don't need one it can improve your credit rating by showing you can manage credit.

If you have no credit whatsoever that's probably bringing your credit rating right down.

LadyJ2308

I have a catalogue account which I manage, and I also used another one over Christmas which is paid off. I have a contract for a phone (although that's just been renewed over the last ten years rather than a new application). I don't have a lot of credit... But there is some.