DMP & Mortgage renewal

curtain8765

Hi all, 

Myself and my partner are due to renew our mortgage, so firstly are there any tips or tricks that would come in handy?

Our current interest rate is 2.55% 
current outstanding is £131,000 and we pay £550 at the minute so really hoping it doesn't go over £700/£750 as we will really struggle. 

I've recently set up a DMP due to start in Feb as my debts combined are £13,000 (CC,Loan for car,overdraft) is this going to have a massive effect on the interest rate/renewal or not so yet as its not due to start until after we'd of done a renewal? 

We're due to have an online meeting with our current mortgage provider this week (Halifax)

Hoenir

Selecting another fixed term mortgage product is done normally online by logging onto your account. There's no human intervention. Unfortunately the monthly outgoing is likely to increase significantly. Whtever your circumstances. As mortgage interest rates have risen considerably. 

born_again

If you just do a rate switch with sae lender, it should not as there is no financial checks.

ACG

You can log on to the halifax website and see what options you have or speak to a broker.

Switching lenders is probably not going to be an option as you will be in a DMP by the time you switch and your circumstances will have changed and credit report will be taking a hit. 

fatbelly

curtain8765 said:

Hi all, 

Myself and my partner are due to renew our mortgage, so firstly are there any tips or tricks that would come in handy?

Our current interest rate is 2.55% 
current outstanding is £131,000 and we pay £550 at the minute so really hoping it doesn't go over £700/£750 as we will really struggle. 

I've recently set up a DMP due to start in Feb as my debts combined are £13,000 (CC,Loan for car,overdraft) is this going to have a massive effect on the interest rate/renewal or not so yet as its not due to start until after we'd of done a renewal? 

We're due to have an online meeting with our current mortgage provider this week (Halifax)

The dmp itself does not create a mark. So the question is whether you have already missed contractual payments. I expect the answer is yes. These will show on your file.

After 3-6 missed payments the lender will issue a default, which will show for 6 years, or an AP marker which will stay until 6 years after the balance is settled

RelievedSheff

Entering into a DMP will reduce the number of lenders that are willing to lend to you.

Your best option may just be a product switch with your current lender. You can just log onto your online account and review the options available and pick one with a few clicks of the mouse.