Re-mortgage to repay debt

fullofcold

Quick question. My husband has a DMP, this is about 10 years before me. I have excellent credit. I own a property at 50% ltv in my name alone. To get things moving along financially we are both savings hard to repay all creditors in his dmp asap. My fixed rate is due up and I was thinking of raising enough on the mortgage to repay it assuming salary, etc stacks up.

I do work in the mortgage and protection industry but would prefer to remain anonymous so don't want to ask anyone in my work place.

kingstreet

What would you like to know?

foxy-stoat

kingstreet wrote: »

What would you like to know?

I struggled to see a question as well

Socajam

DO NOT DO IT - this is something you may regret one day and trust me there are enough people on here who was in your situation, do exactly what you are contemplating and regret it later.
Yes, you love your husband, but he needs to take control of that debt and get rid of it.
If that means he uses all his salary and you support him with yours, I would in a pinch say fine, but I would not take money out of my property to repay his debt - which is dead money.

fullofcold

I am actually full of cold and unsure if my brain is making sense.

I just wanted to know if it was viable to re-mortgage and raise to pay off his DMP debts. Affordability would not be an issue.

fullofcold

I know you're probably right, but I'm just looking at all options. It's not a given that I will do this.

foxy-stoat

fullofcold wrote: »

I am actually full of cold and unsure if my brain is making sense.

I just wanted to know if it was viable to re-mortgage and raise to pay off his DMP debts. Affordability would not be an issue.

You can do what ever you like, as long as your lender agrees your affordability and their lending criteria for pulling equity out of your home to clear unsecured debts, and the fact your other half is on a DMP may make it a little more difficult.

Folk will advise against turning unsecured into secured debt as your home is at risk should the worst happen - you really need to come up with a strict budget plan going forward, ie not building up unsecured debt AGAIN and live within your means and work out how you got into the position and not repeat it.

No one can advise either way as we don't know your full financial position.

ACG

You can remortgage to pay off a DMP. Your options could be restricted depending on who was part of the DMP and whether or not there is anything showing on his credit report.

You could also find payments to stepchange (or whoever it is run by) on bank statements causes a problem with some lenders.

Assuming it is all off his credit file I would expect you to be able to get it through at normal rates.

Should you? I am surprised there are people so strongly against it. If you are married and have been for a while, then you are a family unit. You can not really say yes, I love you, yes I will marry you but that debt, no thank you, that is your problem. Clearly you can see yourselves being together for a while so just do whatever the most cost effective way of dealing with it is, that could be wrapping it up in to the mortgage or leaving things as they are, I have no idea.

ACG

oh and get some Berocca, its amazing! Seriously a day or 2 on that and your cold will be gone. If you start taking it when you feel the cold coming on it can also help to just reduce it down to a mild cold for a day.

(I am not on commission btw, but it is good stuff the supermarket own brands are just not the same).

fullofcold

Assuming it is all off his credit file I would expect you to be able to get it through at normal rates.

Thank you ACG. My husband and I have known each other 30 years. We have only been married a year, but long story short we should have married 25 years ago! Would have made life easier. he might not have got into this mess then!

Anyway, I will get him to pull his credit file for me. I hadn't considered the possibility that it may not show on his credit file and that we may be able to get a mortgage jointly to repay it. I was going to plough ahead in my name alone, but if we can it would make sense because then I could do a 'tenants in common' situation and put 75% of the property to me 25% to him which would be a fair split given that I put the deposit in and he has helped me pay the mortgage since we moved in together (when I completed on the purchase).

fullofcold

foxy-stoat wrote: »

You can do what ever you like, as long as your lender agrees your affordability and their lending criteria for pulling equity out of your home to clear unsecured debts, and the fact your other half is on a DMP may make it a little more difficult.

Folk will advise against turning unsecured into secured debt as your home is at risk should the worst happen - you really need to come up with a strict budget plan going forward, ie not building up unsecured debt AGAIN and live within your means and work out how you got into the position and not repeat it.

No one can advise either way as we don't know your full financial position.

This DMP is 7 years old. It was got into before we got back together when he was trying to keep him, his ex, and his two kids going whilst being the only one working. When we got together he was honest with me about it and we sat down and worked out a budget plan that he has stuck to. He has also been working approximately 30hrs per week above his usual hours to save and get this DMP down, so I know he is committed to the cause. He also has no access to further credit.

Even if he left, the increase in mortgage would still be affordable on my own income. Our children are predominantly grown up and we both work full time on a good salary, both of us have the potential to earn a lot more.

It's ok for people to say that I shouldn't do it, and I completely understand their reticence, but they are not in our shoes and there are things that I know will be coming up in the not too distant future that means we really could do with being joint on things like this. Otherwise at it's current rate he will be paying his DMP for 57 years.

I have also asked about other options on the thread about becoming debt free, but am just really looking at all options currently to get an idea of the best way forward for both of us.

As it stands if we remortgage we will still be below the 70% ltv mark, and we can more than afford the monthly repayments. I have also checked affordability calculators and we comfortably fit. Just depends on lender criteria when the time comes.