Secured loan to pay off DMP
Hi
I’ve got a DMP, it’s over 6 years old, I’ve paid off chunks as and when I can when I get a bonus from work or have spare cash, but I’ve still got 18k left on it. We want to move house in the next couple of years and use some of our equity to clear the DMP, but know that any decent lender won’t look at us with a current DMP. I really want to get rid of it ASAP, get straight/improve our credit for a couple of years, and then move.
Our loan to value is currently 47%, we have nearly 100k equity in the house. Contacted our lender (NatWest) to see if they would let us borrow extra on the mortgage to clear it off but they’re not interested.
So now I’m looking into secured loans. Are there any reputable ones out there who won’t rip us off? We’re ‘pre-approved’ for ocean finance apparently, but I’m concerned they might be a dodgy one!
Any advice welcome.
I’ve got a DMP, it’s over 6 years old, I’ve paid off chunks as and when I can when I get a bonus from work or have spare cash, but I’ve still got 18k left on it. We want to move house in the next couple of years and use some of our equity to clear the DMP, but know that any decent lender won’t look at us with a current DMP. I really want to get rid of it ASAP, get straight/improve our credit for a couple of years, and then move.
Our loan to value is currently 47%, we have nearly 100k equity in the house. Contacted our lender (NatWest) to see if they would let us borrow extra on the mortgage to clear it off but they’re not interested.
So now I’m looking into secured loans. Are there any reputable ones out there who won’t rip us off? We’re ‘pre-approved’ for ocean finance apparently, but I’m concerned they might be a dodgy one!
Any advice welcome.
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Replies
Having a large loan is going to have a significant impact on affordability for the mortgage as well.
You should look at other, more inventive ways to clear the debt, for example, are all your debts enforceable, have you submitted CCA requests ?
Are all your accounts defaulted and sold on ?
Debt purchasing companies are much more open to settlement deals, anywhere between 20 & 75% discount can be achieved if your are persistent and keep at it.
Borrowing to pay off existing debt, especially secured borrowing, is just a folly in most cases, and can lead to you losing the house if life throws you another curve ball, as another poster pointed out above.
Basically its a very bad idea, when other, more sensible options are available to you.
More than a third of IVA`s fail....fact.
Could A Debt Relief Order help you ?
Never pay a fee for a Debt Management Plan.
For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
However, its a really bad idea anyway.
More than a third of IVA`s fail....fact.
Could A Debt Relief Order help you ?
Never pay a fee for a Debt Management Plan.
For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.