Need help with debt and mortgages

Hannahf94
Hannahf94 Posts: 1 Newbie
in Credit file & ratings
I have quite a lot of debt and I am struggling to repay due to being on maternity leave! I have a mortgage which is fixed for 2 years (started October 2017) my question is, if I chose to go through one of them debt companies that write off debt and make repayments to them I know this affects your credit file for 6 years but would this affect my application to mortgage when my 2 year term is up or not? I surely can’t get declined a mortgage now I have my house can I ?
Thanks in advance hope someon can help me!! :money:

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    You could absolutely get declined for a mortgage - and almost certainly would if you are planning a DMP.

    Your only option would likely be to go onto the SVR of your current lender.
  • benten69
    benten69 Posts: 366 Forumite
    First Anniversary First Post Combo Breaker
    Deleted_User wrote: »
    Your only option would likely be to go onto the SVR of your current lender.

    Not strictly true. Depends on the lender. I know Nationwide will let you switch deals without doing any kind of checks if it's all done online. I believe if you switch over the phone or in branch and therefore they are providing advice they will so a search.

    If the OP is with Nationwide at least and they switch to another Nationwide mortgage product online and they don't alter the amount they want to borrow and they don't alter the period they want to pay back the mortgage then they can switch to a new fixed deal without triggering any searches.

    However I cannot speak for other lenders and if they want to alter how much has been borrowed or the length of time it is paid back then yes it will trigger a full search and they could be refused and therefore have to fall back on their current lenders SVR.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    benten69 wrote: »
    Not strictly true. Depends on the lender. I know Nationwide will let you switch deals without doing any kind of checks if it's all done online.

    So will Santander if you're with them and remortgage onto a new deal with them at the end of the fixed term, the only thing they ask you is if the repayments are affordable.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi Hannah and welcome to the forum


    Unfortunately any option where you are paying less than the contractual monthly payments on your debts can affect your credit file. That in turn affects anything that requires a credit check. It could be advisable to speak to a mortgage broker before trying to change your mortgage. They'll be able to advise you on the best lenders to try in that situation.


    I'd also advise seeking some impartial advice on your debt options as it's usually better to take action sooner rather than later. You can get in touch with one of the free debt advice agencies for this.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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