On a DMP but need to remortgage in 4,years

Carrot007

fatbelly said:

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.

* may have been frozen. May also not have defaulted and be nowhere likely to be open to offers. Could even be paying more than the minimum. Only OP can say here.

Sallihh

Thank you so much. 

maggiesden

Neverthetwain said:

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.

We had the same problem and contacted Stepchange, they sent us the previous 6 months to what we could view on the account via email.

Neverthetwain

fatbelly said:

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.

So shall I not mention the DMP then and just apply for a mortgage? 

Neverthetwain

maggiesden said:

Neverthetwain said:

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.

We had the same problem and contacted Stepchange, they sent us the previous 6 months to what we could view on the account via email.

The only thing they’ve offered is to send a statement of fact which the lender wouldn’t accept.

sammyjammy

Neverthetwain said:

fatbelly said:

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.

So shall I not mention the DMP then and just apply for a mortgage? 

If as you say nothing is on your credit report I would apply for the remortgage and not volunteer any info regarding the DMP, if it asks on applications if you are or have ever had a formal agreement regard debts then the answer is truefully no.

Neverthetwain

sammyjammy said:

Neverthetwain said:

fatbelly said:

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.

So shall I not mention the DMP then and just apply for a mortgage? 

If as you say nothing is on your credit report I would apply for the remortgage and not volunteer any info regarding the DMP, if it asks on applications if you are or have ever had a formal agreement regard debts then the answer is truefully no.

Ok brilliant thanks for the advice

lemondrops69

Wont the payment to SC show on bank statements if the mortgage lender asks for them?

Neverthetwain

lemondrops69 said:

Wont the payment to SC show on bank statements if the mortgage lender asks for them?

Yes good point it will. Although as from next month I’ve changed the payments to come out of a different bank account.

Suseka97

I'm not quite sure why you are considering borrowing more to pay off your DMP - that really makes no sense, moving an interest free unsecured debt or debts that must surely no longer be showing on your credit files, to an interest bearing loan added to your mortgage - please don't do that.

As to your mortgage options, take the advice given above and contact a mortgage broker.  There's a few posters under the Mortgages board on MSE who are mortgage advisers and although they are not allowed to tout for business by giving professional advice to posters, they can give general advice to put you on the right track.  If you have to change mortgage providers, going through a broker is the best way forward and make sure you get advice from a 'whole of market' broker, not one who has a vested interest with a certain bank or banks.