Remortgage on DMP

MrsKirky26

Best options? Fixed deal due to end soon. Additional borrowing required for urgent house repairs. Mortgage is my name only but now married and would like it in both names. Currently on DMP so our credit history is not good to say the least.
We have never missed a mortgage payment, been on DMP for 3 1/2 years, over half way, £11k debt.
Currently owe £49k on mortgage, LTV 49%, 7 years term left. We have had quotes for the building works £8k which will be the additional borrowing.
Current mortgage provider have refused further borrowing based on affordability check, they can only use my salary and counting husband as a dependant, as he's not on the mortgage.
There is also a retention on the mortgage of £1k for damp works, which is included in the quotes we have had. Will we lose this?
Not sure what to do next? Obviously, we will be looking at a subprime mortgage, but we can't stay as we are, as the chimney is falling in, the walls have rain leaking in, and its only going to get worse.
Any advice would be appreciated

Westminster

Initial gut reaction (having been on a DMP previously) is no chance whatsoever.

1. By borrowing more, you would technically be breaking the terms of any DMP as you would be giving preferential terms (by paying interest to a lender for an additional borrowing) over and above your existing creditors. You could probably get around this by managing your own DMP if you are not already.

2. If you fail affordability checks with your current lender, I suspect the same may be true elsewhere.

3. Find a broker who specialises in adverse credit and give them the credit files from Experian (get the £2 statutory or signup for the credit expert trial and then cancel as soon as you have the copy of the file), Equifax (get this for free at clearscore.com) and Call Credit (free at Noddle.co.uk) - this will need to be for both you and your husband. Perhaps they can find a solution if you can solve number 1.

Best of luck :-)

ACG

Your husband should not be a dependant if he works.
There are lenders who do not mind a DMP. However, depending on the figures involved it may be worth seeing what is available with your current lender then taking out a secured loan for the extra you need.

Either way, there are potentially a couple of options, I would speak to a broker who has experience in adverse credit and see what they suggest as it always comes down to the finer details.

MrsKirky26

I explained to my current lender that all outgoings are split 50/50, but they would only do the affordability check on my salary as the mortgage is in my name. We both have full time jobs and have worked out what we can afford. We need to make the house water tight and safe, but without borrowing more, we can't do this. Ideally, I'd like to borrow enough to offer settlements to pay off the DMP early, but the house repairs are urgent. I have discussed this with StepChange.
My current lender advised Transfer of Equity to put husband on the mortgage, which will cost us fees which we don't have and will take up to 8 weeks. Even then the additional borrowing will be declined due to the credit history.
What do we do? Sell the house? Pay the DMP and rent? In a few months, we won't be able to live in it anyway, due to the state of the roof, windows and chimneys.
I've arranged for a broker to call me and see if there is any hope?

Dave_Ham

Await the call from the broker and sure you will feel a lot better about your options, of which there should be some from the information provided on here.

Playing_with_Fire_2

How is your spouse's credit record? Could they get (and afford) a personal loan or 0% credit card with money transfer for the repair works while you stay on the SVR of the mortgage? It wouldn't be ideal but you would be in a dry house!

MrsKirky26

He has no credit history, other than a joint loan which we defaulted on, now paying on the DMP.

Westminster

MrsKirky26 wrote: »

He has no credit history, other than a joint loan which we defaulted on, now paying on the DMP.

If it was a joint loan then he does have a credit history - and it will have at least 1 default on it which will be for that loan.