On a DMP but need to remortgage in 4,years

Neverthetwain

I have been on a DMP for 10 years and still owe £23000. My interest only mortgage is ending in 2026 and they aren’t offering mortgages anymore.

Two years ago I got a job with a permanent full time contract. Prior to that I was on zero hour contracts.

I recently got accepted in principle for a remortgage and to pay off my DMP.Due to my DMP company only provide 6 months statements not 12 the new lender will not proceed with my new mortgage.

My dilemma is shall I try another lender or pay the DMP off in 4 years?
I am in a time restraint and the last application took 4 months.

fatbelly

Mortgage applications are not my specialist subject but I don't understand why the dmp has to be flagged up to the new lender. All those debts should have been defaulted and dropped off your credit file by now.

I wouldn't move the dmp debt to secured debt.

Just get a broker to look for a straight remortgage for you.

Neverthetwain

I would be grateful for any advice, thanks in advance.

Carrot007

Neverthetwain said:

I recently got accepted in principle for a remortgage and to pay off my DMP.Due to my DMP company only provide 6 months statements not 12 the new lender will not proceed with my new mortgage.

Surely you have the statements you download each month? I hope you are not paying for a DMP, especially with that sort of service.

Find a whole of marker mortgage advisor that know something about adverse credit mortgages. (I would recomend that to everyone regardless of situation (yes, even the adverse knowledge bit)).

sourcrates

Neverthetwain said:

I recently got accepted in principle for a remortgage and to pay off my DMP.Due to my DMP company only provide 6 months statements not 12 the new lender will not proceed with my new mortgage.

Don`t understand what your mortgage application has to do with a DMP provider ?

One has nothing to do with the other surely ?

You provide bank statements for a re-mortgage, as said above, after 10 years all trace of your former debts will have long since gone from your credit file.

Can you clarify this a  little more please, and are you using one of the free debt charities to run your DMP, or a commercial debt management company that charges a fee ?

Neverthetwain

Because we we going to add the DMP with Stepchange to the mortgage as we have £100,000 equity.

Neverthetwain

I thought lenders would find out we had a DMP?

Carrot007

Neverthetwain said:

I thought lenders would find out we had a DMP?

Which is a good thing surely?

fatbelly

Neverthetwain said:

I thought lenders would find out we had a DMP?

It doesn't appear on your credit file as a DMP. The individual debts only appear until six years has elapsed since the default - they should all be gone now

fatbelly

Neverthetwain said:

Because we we going to add the DMP with Stepchange to the mortgage as we have £100,000 equity.

Interest will have been frozen on the 10-year old debts and the present owners of the debts will be open to a full and final settlement deal.

You are going to re-instate interest, remove the possibility of a deal, and move the debt to a place where the lender has the automatic right of repossession of the property should you get into trouble.

I wouldn't do that.

Carrot007

fatbelly said:

Neverthetwain said:

I thought lenders would find out we had a DMP?

It doesn't appear on your credit file as a DMP. The individual debts only appear until six years has elapsed since the default - they should all be gone now

If there was a default. Stepchange really tend to hinder rather than help on that point.