Remortgage on dmp to clear of debts and buy bigger house

emma5396

Hi sorry if in the wrong place.
We have debts just under 50k. We have a mortgage and just had our home values at a lot more than we thought.
We want to buy bigger house and pay of the debts we have with full and final settlers if we can.
Just wondered if anyone else has been able to do this and if so what rates on mortgage did they get?

Thrugelmir

emma5396 wrote: »

We want to buy bigger house and pay of the debts we have with full and final settlers if we can.

Not unsurprisingly you may find that mainstream mortgage lenders are not particularly keen on this concept. Added to which they'll require some reassurance that you have the ability to manage your personal affairs well. Something your suggestion does not inspire any confidence in.

Trying_to_be_good

Your post reads that you don't want to pay your current debts, but want someone to lend you more money to buy a bigger house. Why would they do that when the example you've set is to not pay back what you previously borrowed?

I realise the question you've asked is about rates - I think the first question will be whether it's possible at all.

banks4u

How long ago did you get into a DMP? Is it still showing on credit report?

emma5396

Hi yes we are still in dmp and hav even for 2 years next month. Some company's have offered us full and final payment whic is a lot less than what we owe.

banks4u

I think the only lender that may accept it is Kensignton but the rates are really high. I personally would stay put clear your debts, don't pay the reduced price as lenders don't like that. I had over 50k in debt and I cleared it all last year and this year getting a mortgage but my debt were 4/5 years and no CCJ's.

But be warned lenders don't like any adverse in the last 2 years especially.

banks4u

Basically lenders will think hold on you can't afford to pay the full rate on the debts how can you afford a mortgage.

emma5396

Iv not really explained myself well. We currently have a mortgage in situ already we have over 150k equity so by moving to bigger home and releasing some equity by paying off all of debts. All we wanted was to see if anyone in our position had a new mortgage accepted at all.
We have never missed a mortgage payment either

Caz3121

would the bigger house be cheaper than the current house or would you be looking to increase the mortgage amount
eh current house worth £250k, mortgage £100k (£150k equity)
new property £300k, use £100k equity so now need a mortgage of £200k
some information from Stephchange on mortgages when on DMP
http://moneyaware.co.uk/2013/09/can-i-get-a-mortgage-while-on-a-dmp/

emma5396

The mortgage would actually work out cheaper than what we are currently paying with the stepchange payments that's why thought would be a good idea to release equity pay off and try to remortgage to move. We have worked out even at higher interest would work out more better for us and then we would be in a position to actually pay me off the mortgage

lovinituk

But you wouldn't be releasing equity, you would be borrowing more on the mortgage.