Mortgage/DMP Query from a newbie

setmefree17

Morning,

Newbie here and I'm unsure which part of the forum to post this in really so it's also been posted in the Debt Free Wannabe section of the forum too, but looking for a bit of help which could be covered by several avenues of inquiry...

Firstly me and my partner are around 4 years into a DMP with Payplan, with around 12k left to go to clear it.

I've been looking around at several ways to try and get rid of this quicker, and one thing that keeps playing on my mind is my current mortgage (here me out)... With our mortgage, foolishly (or maybe not, I'm pretty clueless with mortgages really) our initial fixed rate ended a fair few years ago (around 6-7 years to be precise) and we've overlooked getting this looked back into a fixed rate. Since taking the mortgage out our house value has seemingly (if Zoopla's estimates are anything to go by) gone up by a decent amount from £100,000 we secured the property for back in 2013 to around £160,000 now, and this is using the very lowest end of Zoopla's online basic estimate of the value.

What I'm realistically looking to establish is would there be any way of getting back into a fixed rate mortgage, that would free up funds to clear the DMP, as well as have further funding to do some house improvements as there's a fair bit ideally that we would be looking at doing to the house (new windows and doors for one due to them being the original ones from when the house was built and the seals starting to go quite badly). Currently the balance on the mortgage is around the £78k mark, so if Zoopla's lower end estimate is to be believed, we should have around £80k equity if I've got my thinking right around that?

My general feeling is that if this is possible, although there'd be additional borrowing against the property, this could potentially, depending on what's out there, lower my monthly mortgage payments and completely wipe out my monthly DMP payments, freeing up a fair bit of cash for us to put towards savings, which at the minute, is pretty difficult.

Any help or advice, pointing me in the right direction would be much appreciated. 

ACG

Who is your current mortgage with?

setmefree17

ACG said:

Who is your current mortgage with?

Originally taken out with Yorkshire Bank, now Virgin Money

ACG

There are potentially 2 ways to do what you want:
1) Switch products with virgin money and take out a secured loan. This means your main mortgage remains on a good rate and the top up on a rubbish rate. 
2) Go with a specialist lender and all of it is on a rate somewhere in the middle. 

Its probably worth speaking to a broker as you will need for the specialist lenders, but they can also price up the 2 options to work out the cheapest.