Remortgage, while on DMP?

missyp123

hello, i have also posted this in the mortgages forum, but also thought someone here might have been in the same situation?


Hello,

Me and my husband have just comleted agreement for a DMP with CCC's.
We have never missed a payment with any of our creditors but simply were borrowing money to live.
We continue to pay a mortgage which is now out of its fixed term with northern rock, we have had to go onto interest only and pay just under £660 pm, 22 years left of £105,000 owing.
When we had our house up for sale it was valued at £135k its just non of the houses on my road are selling.

My question is are we going to be able to remortgage with another lender for the £105k while in the dmp?
The problem being £30k of our debt on the DMP is our unsecured loan with northern rock.

rayday2

Not sure about the Nortern Rock situation but they could the sell the debt on in the future so no longer be connected.

I used to have a sub prime mortgage which went up to a killer interest of 9% having been on a DMP for two years we remortgaged two months ago with Chelsea Building society who offered us 6.34% and if we do not miss any payments in two years time we can remortgage again with them they won't look at our credit history and treat us as a highstreet customer.

They may sound frightening rates if you already have a good deal - all you can do when the time comes is shop around but avoid LIBOR rated mortgages which most sub prime are - as these are the mortgages that are fixed on LIBOR rates rather than bank of England. LIBOR is the rates banks borrow money from each other which as you know from the headlines is pretty expensive now!