Re mortgage when on DMP

col81

Hi, I have a DMP with stepchange owing around £7k (possibly) £4k depending on CCA information (looking like £4k). I have had 5 defaults, 3 have dropped off and 2 drop off in May 21. I currently owe £118000 on my house interest only which is worth £135000. I want to re mortgage what are the chances and what will the rate likely be. I have no other debts. I want to go on a high street lender re-payment mortgage i earn £40k pa. Any thoughts?

Thrugelmir

If you can afford to switch to a repayment mortgage. Why not speed up repayment of the DMP? 

ACG

If this had been last year, I would say there will be lenders who might do this.
However, at 87% LTV and with some of the Defaults still showing, I think you will struggle.  I assume you can not switch products with your current lender? 

You may need to hold off until those defaults drop off and hope house values stay steady if you want high street rates.

col81

I am with Engage credit following the libor rate i have had this mortgage for 12 years and it has changed hands about 6 times. I could speed up the DMP and will do for the next 8 months until i look again if that is the case. Once all debts have dropped off i will have £0 debt and only the mortgage. To be fair i only pay £380 pm now but as i say this is interest only. 

ACG

Personally, I would put the extra money you have to one side.
When it comes to apply for a new mortgage, you could then be looking at a sub 85% possibly even 80% product, that would probably help give you more options. 

col81

To be fair it could be worth up to £150 i got it valued at £135 2 years ago. What are the repayments likely to be on it as a example. 

col81

Is the Libor rate ending soon? What would happen to the current mortgage then? Am I likely to be paying more or less?