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Mortgage, DMPs and Change in Circumstances
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Mooglet71
Posts: 85 Forumite
We have had our current mortgage with the Yorkshire BS since 2009 and never defaulted. We owe £80k and the value of our house is £185k. We pay £700 per month.
Our circumstances have changed since then. I went on a DMP in Nov 2011, Husband started one in 2014. Husband was made redundant in 2011 and I took VR (before I was pushed out) in 2014.
Our total income is now £17,000 and we have two kids. Do you we think we would be able to apply to the Yorkshire to change our mortgage. We are currently on their normal rate as our fixed deal ended some years ago. Using their mortgage calculator for existing customers we could be paying less and reduce our term by 2-3 years. Surely this would be good for all?
Or do you think they will laugh at us? I also did an affordability calculator and based on husband's earnings we may be eligible for £80k mortgage.
It has pretty much killed us meeting the payment every month, but we have been determined!!
Our circumstances have changed since then. I went on a DMP in Nov 2011, Husband started one in 2014. Husband was made redundant in 2011 and I took VR (before I was pushed out) in 2014.
Our total income is now £17,000 and we have two kids. Do you we think we would be able to apply to the Yorkshire to change our mortgage. We are currently on their normal rate as our fixed deal ended some years ago. Using their mortgage calculator for existing customers we could be paying less and reduce our term by 2-3 years. Surely this would be good for all?
Or do you think they will laugh at us? I also did an affordability calculator and based on husband's earnings we may be eligible for £80k mortgage.
It has pretty much killed us meeting the payment every month, but we have been determined!!
Make £10 a day: £48.76/£150
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Comments
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Many lenders offer customer retention products without further affordability or status checks.
You need to ask yours what it has for you.
Do not talk about reducing the term as that will trigger the "advice process" which will then open the can of worms you want to avoid.
Make voluntary overpayments to reduce the term if that's your objective.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for your response. I guess we will have to give it a go and see. If we were to make an application for a new product and were declined because of credit score, would that affect our current mortgage with the Yorkshire?Make £10 a day: £48.76/£1500
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Nope. They are stuck with you.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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+1 or is it +2? I've been on a DMP and changed my mortgage deal with same lender and they never did a further credit check, as kingstreet said they are stuck with you
@kingstreet what is the "advice process"?? I want to change my term at some point and have no issues with having enough cash pm to do it (sorry for the hijack)One man's folly is another man's wife. Helen Roland (1876 - 1950)0 -
owen_money wrote: »+1 or is it +2? I've been on a DMP and changed my mortgage deal with same lender and they never did a further credit check, as kingstreet said they are stuck with you
@kingstreet what is the "advice process"?? I want to change my term at some point and have no issues with having enough cash pm to do it (sorry for the hijack)
I would like to ask is overpayments the only workaround for reducing mtg terms in the mentioned dmp circumstances?Replenished CRA Reports.2020 Nissan Leaf 128-149 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500 since returned to 1gb0 -
kingstreet wrote: »Nope. They are stuck with you.
It could be worse, we do prioritise our mortgage above everything else so in spite of our DMPs we do pay!Make £10 a day: £48.76/£1500 -
An alteration which would see the term change would require advice post-MCD/MMR so affordability would be a factor for the OP.owen_money wrote: »@kingstreet what is the "advice process"?? I want to change my term at some point and have no issues with having enough cash pm to do it (sorry for the hijack)I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Nope. They are stuck with you.
Just wanted to say thanks for your advice. We managed to moved to a fixed rate and it was total plain sailing! We are now saving £140 a month on our mortgage which is brilliant
Make £10 a day: £48.76/£1500 -
You are welcome!Just wanted to say thanks for your advice. We managed to moved to a fixed rate and it was total plain sailing! We are now saving £140 a month on our mortgage which is brilliantI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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