New mortgage deal during DMP

System

This discussion was created from comments split from: Struggling with debt? Ask a stepchange debt adviser a question.

daniflo96

Hi!

I'm considering going into a DMP with stepchange, but im concerned about my mortgage. 

My mortgage is 121,000 and my house is now worth around 223k, but i still owe 20% for the help to buy loan. I have just fixed for another 2 years. 

My original plan was after the 2 years to remortgage to pay off the help to buy loan (before the interest starts getting higher) but now I’m worried I wont be accepted to remortgage if I’ve had or am still in a DMP.  Can anyone advise if this is usually a straight decline? 

sourcrates

I have split your post into a new thread, as you had posted on the stepchange debt advisors board.

To answer your question, a re-mortgage with your current lender does not normally require a credit check, so no issues if you stay with your current lender.

ManyWays

sourcrates said:

I have split your post into a new thread, as you had posted on the stepchange debt advisors board.

To answer your question, a re-mortgage with your current lender does not normally require a credit check, so no issues if you stay with your current lender.

I dont think that is right. A new fix for the same mortgage (same borrowers, same amount) would not require credit and affordability checks. But borrowing more is a new mortgage, not just a new fix applied to the current mortgage.

I dont think a lender is likely to be prepared to lend you more to buy out the HTB when you are in a DMP, I would expect a stright decline. But if you need a DMP now, then it's highly likely you would fail any affordability checks for a larger mortgage anyway. So the problem here isnt really the DMP but the fact that your finances are very difficult.