DMP Mutual Support Thread - Part 12

sunnyskies2

Thanks Kram. We’ve sorted an alternative option now so not required. I was told by my broker that they’d be able to get a better rate and confident we’d be able to get a loan, once a year of full payments. Posted really for others who may be wondering about dmp and mortgage as I’d read previously it was nigh on impossible.

Cheers

Billy12345

sunnyskies2 wrote: »

Thanks Kram. We’ve sorted an alternative option now so not required. I was told by my broker that they’d be able to get a better rate and confident we’d be able to get a loan, once a year of full payments. Posted really for others who may be wondering about dmp and mortgage as I’d read previously it was nigh on impossible.

Cheers

Hi sunnyskies2,

I am in a similar situation. There are a few companies out there who will consider a mortgage for someone in a dmp subject to certain conditions, obviously these differ from company to company but they seem to follow that you should be in a dmp for 12 months with no missed or changed payments, not have any defaults within a 3-6 month period and pay either a 15% or 25% deposit. Also the deals on offer are higher interest payments, in the region of 5%.

Ive been in a dmp for just over a year and we are considering selling and moving, the mortgage amount is lower but with the above the monthly payments will not be too much different.

Its a lot better than 12 months ago when no one would touch you for a mortgage if you had a dmp. The market seems to realise dmp's are actually becoming more common for a lot of people but those people, myself included, are managing their dmp's as part of normal life and shouldnt be penalised for addressing their financial issues.

:beer:

Danny008

Is it possible just to do a rate change with your current lender when on a DMP? We are in the process of starting our DMP and our mortgage rate ended this month but we did a rate change and fixed it for 5 years.

StopIt

Danny008 wrote: »

Is it possible just to do a rate change with your current lender when on a DMP? We are in the process of starting our DMP and our mortgage rate ended this month but we did a rate change and fixed it for 5 years.

Good timing as the effects of the DMP probably wouldn't be hitting your credit files as yet.


Every lender will have slightly different policies, but if you apply for a fixed rate deal after a large change in your credit history, it can affect your chances significantly of getting the best rates.


I believe that the worst that can happen is that you'll not be offered one and you'll be bumped to the SVR but nothing worse than that. However in the case of re-mortgaging and moving providers, the rates offered could be significantly worse.


When thinking of a DMP, it is imperative that you seek advice from at least 1, if not more debt charities before you do, especially when you have assets to protect. A DMP is a valuable tool, but there are challenges that must be worked around.

Dandytf

Danny008 wrote: »

Is it possible just to do a rate change with your current lender when on a DMP? We are in the process of starting our DMP and our mortgage rate ended this month but we did a rate change and fixed it for 5 years.

I’ve done a recent change fron end 5yr fix to new 2yr fix via existing mtg provider Natwide.
Online swap existing customers though didn’t change term or amount.
Simple swap during sc dmp 2012 until 2022.

All existing customer rates aere available to choose from.

sourcrates

Although we welcome any questions DMP related on this thread, for specific mortgage advice, we do have a mortgages board, which can be found here ;

http://forums.moneysavingexpert.com/forumdisplay.php?f=15

A little leeway is fine, but try to keep the thread on topic if possible, thanks.

leanne12345

Hi everyone, just wondering what an acceptable length of time for a dmp to run generally is? Due to a change in employment I'm having to re-jig our budget and it takes it from 7 to 12 and a half years, and I'm still not convinced that leaves us enough to comfortably live on. Not really sure what to do

sourcrates

leanne12345 wrote: »

Hi everyone, just wondering what an acceptable length of time for a dmp to run generally is? Due to a change in employment I'm having to re-jig our budget and it takes it from 7 to 12 and a half years, and I'm still not convinced that leaves us enough to comfortably live on. Not really sure what to do

Hi,

It would depend on your personal circumstances as to which debt solution would be best for you, some would say a 12 year DMP was reasonable, i would say anything over 6 years, then look at other options.

But you may not be able to do that, as i said, its down to personal circumstances.

leanne12345

sourcrates wrote: »

Hi,

It would depend on your personal circumstances as to which debt solution would be best for you, some would say a 12 year DMP was reasonable, i would say anything over 6 years, then look at other options.

But you may not be able to do that, as i said, its down to personal circumstances.

Ok thank you. I did take a look at other options on the Stepchange website earlier and none seemed to fit so I will crack on with the DMP for now at least.

Just_Afloat

Is it possible just to do a rate change with your current lender when on a DMP? We are in the process of starting our DMP and our mortgage rate ended this month but we did a rate change and fixed it for 5 years.


I've been on DMP for over 2 years and just done a new fixed deal with my mortgage provider for a further 5 years at 2%. Just had to lie a little...during phone referral to say my financial situation hadn't changed since my previous deal started 3 years earlier :-)