Is there any hope? Maybe one for a broker?

muppetscotland

Morning all
Spent yet another restless night worrying about the future

In a nutshell we have been forced to start a DMP by a drastic drop in income brought about by the low oil price (we are self employed thru own Ltd co working with oil companies). Anyway, we have a lot of unsecured debts which are now in a DMP. Debt Free Date more than 10 years away (although I know I could try F&F in a few years).

Anyway, we have a nice house worth £310,000 with about £80,000 equity. We are both 49 this year.

We want to move to the coast in a few years, to downsize and start thinking of retirement. We would have approximately 40-50% deposit for the type of property we are considering.

But I just can't help feeling we have no hope. Our current home is not likely to jump in value any time soon due to the aforementioned oil crash, and our mortgage has 17 years left to go.

So basically the equity position isn't going to change all that much over the next 4-5 years.

You read about adverse credit mortgages but I do wonder if they really exist....at the end of the day we are not in arrears for any secured debt but our credit file will be littered with AP markers and Defaults starting this year.

On the plus side - Our income multiples will be fine for the size of mortgage we want and our deposit high (40-50%)

On the down side - our age, early 50s. Our TERRIBLE credit file. Ongoing DMP as debts won't be repaid even with F&Fs.

Bankrupty not an option as we would lose our home and wouldn't be able to operate our Ltd company as directors.

Thanks for reading.

ACG

There will be lenders but typically the DMP would have need to have been in place for at least 12 months, ideally a couple of years.

Rate wise, who knows where we will be in a few years but on todays rates I would say marginally under 4% would be achievable if it had been in place for 3 years.

Thrugelmir

muppetscotland wrote: »

So basically the equity position isn't going to change all that much over the next 4-5 years.

Is your mortgage on an interest only basis?

muppetscotland

Thrugelmir wrote: »

Is your mortgage on an interest only basis?

No, mortgage is on repayment basis so I guess we could assume a slight drop in the cspital balance.

muppetscotland

ACG wrote: »

There will be lenders but typically the DMP would have need to have been in place for at least 12 months, ideally a couple of years.

Rate wise, who knows where we will be in a few years but on todays rates I would say marginally under 4% would be achievable if it had been in place for 3 years.

That's interesting (and cheering). Is it because of the large deposit?

ACG

That will help to get the rate down, but it could possibly be done with as little as 15% deposit at hgher rates.

muppetscotland

So in short we should keep chipping away at the debts via the DMP and try to move in 2-3 years' time? That has given me something to aim for! Thank you

ACG

It depends what you want, if you want to move asap then I would say give it 12 months and get in touch with a broker.
The longer you leave it the more options you will have. Although it also depends how it all appears on your redit reports also.

muppetscotland

Although it also depends how it all appears on your redit reports also.[/QUOTE]

For the avoidance of doubt my credit file will still look terrible in 12 months. We will be one year into a DMP, loads of defaults and AP marks. Nothing is going to improve any time soon.....

It's just I still don't really understand when you say depends how all appears....sorry if I'm being thick!

ACG

If it was not showing as defaults you would have better options. It does not always show as defaults on yoru report.
It is, so my comments above are probably fairly accurate.