Re- Mortgage after DMP

jubilee14

Looking for some advice please.

Have been on a SVR discounted with Landmark ( NRAM as was). In 2012 had to enter a DMP which was completed in January 2019.

All defaults will have dropped off my file except one which comes off in June 2019.

As i cant re-mortgage with Landmark had looked to a broker who was going to get rates they have been quoting about 4%. I queried whether its worth waiting for a few months as between the arrangement fee and broker fee any savings on mortgage payment would be eaten up if fixed for 2 years.

They have said that its the DMP rather than the defaults, therefore does this mean i will never be able to re-mortgage at anything less than around 4% because i under went DMP. Or is it worth allowing a few more months/years to go by before applying for a further reduced mortgage. In the hope that a bit better rate than 4% applies. ( these are only indicative figures at the moment)

Any advice is welcomed.

butterflybook

You will be looking at around the 4% mark now due to the DMP and it only just having been completed. May lenders will want the DMP to be clear for at least 36 months before offering competitive interest rates however not all of them.

Have you instructed a broker who has access to the whole of the market?

foxy-stoat

What is your LTV % like?

Thrugelmir

While working out what to do for the long term. If you can afford to. Overpay your current mortgage. This will at least reduce the amount of interest you are being charged and correspondingly the debt owed.

Is your mortgage currently interest only ?

ACG

Put your credit reports in front of an experienced broker, I think possibly normal rates are achievable if you give it another month or 2.

jubilee14

Hi all and thanks for the feedback. to answer some of the questions.

Mortgage is Repayment( ie not Interest only)
LTV is 72%
Had gone to an 'unbiased' broker with experience with bad credit.

Was considering to start overpaying to reduce term. Just dont want to jump into a 'specialist rate' which when fees applied, cancel out any possible reduction and I end up tied in for longer when at some point was hoping my credit history improves.

Just worried that because I was on DMP that this would be limited choice for rest of term of mortgage.

Carrot007

jubilee14 wrote: »

Just worried that because I was on DMP that this would be limited choice for rest of term of mortgage.

A DMP is an informal agangement and not something you need to declare.


It is what is on the credit files that matter. Yes they can say arrangement to pay. And yes fnished recently is a bad point.


I got a OK rate buying a new house with a few defaults still there. Although over 3 years old (which yours seem to be). So forget about the defaults what else is said?


(If some companies in your DMP did not default you you should complain and get them to do so backdated, especially if it meanas they instanstly fall off).

ACG

Carrot007 wrote: »

A DMP is an informal agangement and not something you need to declare.


It is what is on the credit files that matter. Yes they can say arrangement to pay. And yes fnished recently is a bad point.


I got a OK rate buying a new house with a few defaults still there. Although over 3 years old (which yours seem to be). So forget about the defaults what else is said?


(If some companies in your DMP did not default you you should complain and get them to do so backdated, especially if it meanas they instanstly fall off).

Not to be rude, but please ignore this.
It is a formal agreement, there is a company involved usually such as step change who set up the agreement.

It does need to be declared where asked (some will lenders will ask if you have EVER made arrangements with your creditors).

Normal rates could well be achieved. Make sure you only pay the broker on offer or completion.

foxy-stoat

You have a good LTV so you should be able to remortgage with another lender.

jubilee14

Thanks all, i think what i will do is get onto overpayment for now. Give the next couple of months till at least all the defaults come off. Then re-look again as to what my options are re other possible options by then i should be below 70% with no credit. If i have to declare arrangement then thats just what i have to do. But it doesnt look like a lifetime of landmark rates.

ACG

Even if you have to declare the DMP, it is not the end of the world.
I would expect there to be options now, but I think a month or 2 until the DMP drops off your bank statements will just give you a few more options.