DMP, Mortgages, selling and general confusion.

recyclingbox

I don't think this is a request for help (yet) but think it may be a cathartic moment as I try to get my head round what is happening. Although any input will be appreciated (!)


18 months ago I lost my well paid job and managed to dodge along on the redundancy payment plus casual work for a year plus wife's salary. However, that dodging along was a lot of credit cards being racked up, minimum payments only etc. and foolishly a couple of payday loans (paid off in full on time) - in June it all finally overwhelmed me/us and we got a DMP in December after 6 months of ostrich like behaviour!
I am now working again, on a third of my previous salary and on a fixed term contract which I expect to get renewed, fingers crossed.
Anyway, we have decided to sell our home (we've accepted an asking price offer on it) which has 100K equity in it which will wipe the DMP (35K) plus gives us enough for a deposit on a smaller home. our mortgage is £1800 per month (we have never ever missed a payment). there is six months left on our current deal although it is portable but in reality I am not sure what that means - this mortgage was taken out 2 months before I was made redundant. we think now we can get a mortgage that would be around £600 p/month and know we can afford it. However, My biggest fear is we will leave our lovely house that we invested so much time and love in and because of the DMP and credit file problems we won't be able to get another mortgage and end up living in rented accommodation for ever! Although we would be debt free - it has always been my aim in life to be rent/mortgage free in retirement.
I am not sure what to do now? rent for 6 months-year to try and straighten out credit? apply for a new mortgage? see if I can port(?) the existing one?
Thanks to anyone who would like to chip in with advice/guidance or general comments!!

sourcrates

Hi,


There is a Mortgage board on the forums, you may get more detailed advise on there as regards the mortgage questions :


http://forums.moneysavingexpert.com/forumdisplay.php?f=15

another_casualty

If you are on a dmp, finding a mortgage is tricky. If you do, the % will probably be higher. Payplan put me through to reach financial services who are nice people to deal with . I failed on 'affordability'( another term for soa I guess ). Brokers such as John charcol won't touch anyone with a dmp.

Hope things work out