Renewing existing mortgage and DMP

changeforbetter

Hi,

I have discussed this briefly in the debt-free forum, but as this is specialist to mortgages here I would be most grateful for any advice here too (and/or experiences).

I have been with my mortgage provider for two mortgage periods now (renewed last in 2013 for a 5 year fixed rate). I also am currently in a Debt management Plan which started this year, and therefore not great credit rating of course.

I have a joint mortgage, and our payments have always been perfect (never had a missed payment in 10 years). My partner's credit rating is also much better than mine.

I am however, slightly worried about whether there will be any difficulty when our current rate runs out in 2018. We don't want to change provider, and would simply want to renew again (hoping that keeps things simple).

If anyone has experience or knowledge about staying with the same provider when in a DMP would be much appreciated.

I'm hoping we can simply renew without too much hassle, as we are good customers of theirs generally speaking!

Neutrinno

As long as you’ve got a good payment history your existing lender won’t do any credit checks when it offers you an alternative deal, you should be fine.

Thrugelmir

Your mortgage simply runs until the end of it's natural term. The worst scenario is that your mortgage would simply default to the lenders SVR interest rate. Totally at each lenders discretion whether they review individual customers or not. The majority don't. As they've the security of the property to settle the outstanding debt.

changeforbetter

I should add, we are relatively far on in paying the mortgage, so it should have reduced to around £50,000 (from originally well over 100k mortgage) by 2018 when this crops up. There is probably quite a bit of equity in our property in comparison, so I guess that makes a difference in terms of security for our provider as you say.