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  • FIRST POST
    • doozeruk
    • By doozeruk 12th Apr 18, 11:04 AM
    • 249Posts
    • 83Thanks
    doozeruk
    Remortgage with dmps, years before a high Street bank
    • #1
    • 12th Apr 18, 11:04 AM
    Remortgage with dmps, years before a high Street bank 12th Apr 18 at 11:04 AM
    It's been an awful long time since I frequented this forums, I used to be a helper instead of those in need of help.. How times change!

    So my question is:

    I am looking to remortgage with my wife this summer and have already seen a broker regarding this, but would love to hear more than their opinion.
    I have 5 defaults on my CF, 4 of them end by August this year the last one not until Oct next year. I am in dmps with all creditors and they have all at some point or another been sold on to specialist debt companies.

    We have been told we can remortgage with an adverse lender at 3.8% fixed for 2 years with the defaults in place so not too bad. However she has explained that even when all those defaults have disappeared and we come to remortgage again in 2 years because my debts will still not have been settled and will still show on bank statements as being paid a high Street bank will not touch us.

    Anyone back this up please?

    Many thanks
    The early bird may get the worm, but the second mouse gets the cheese.
Page 1
    • kingstreet
    • By kingstreet 12th Apr 18, 12:55 PM
    • 33,188 Posts
    • 17,925 Thanks
    kingstreet
    • #2
    • 12th Apr 18, 12:55 PM
    • #2
    • 12th Apr 18, 12:55 PM
    I would have given you a definite maybe, rather than a definite no.

    There are lenders who don't ask for bank statements and their adverse credit questions are centred only on the latest six years, not on "ever"...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • doozeruk
    • By doozeruk 12th Apr 18, 1:11 PM
    • 249 Posts
    • 83 Thanks
    doozeruk
    • #3
    • 12th Apr 18, 1:11 PM
    • #3
    • 12th Apr 18, 1:11 PM
    In all honesty I didn't even give it a thought that the continued debt after 6 years was relevant. Combined they total just less than 11k and she has suggested that we use part of the remortgage to pay these off to avoid any problems in 2 years.
    To be honest it makes sense as it will all be gone but it was something I was totally unaware of.

    Thank you
    The early bird may get the worm, but the second mouse gets the cheese.
    • Brock_and_Roll
    • By Brock_and_Roll 12th Apr 18, 3:41 PM
    • 818 Posts
    • 796 Thanks
    Brock_and_Roll
    • #4
    • 12th Apr 18, 3:41 PM
    • #4
    • 12th Apr 18, 3:41 PM
    By any historical context, being able to get a fixed rate of 3.8% with 5 defaults / current DMP on file is surely about as good as it will ever get!


    [As a banker, I would love to have a good rummage through that lenders profitability, default probability and loss given default calculations]


    I am by nature cautious, but I would expect that as interest rates slowly rise amidst continuing economic austerity, there will be a slow tick up in mortgage default rates and "flight to quality" in terms of credit being offered.....so today is probably as good as it is going to get.
    • feekerry
    • By feekerry 12th Apr 18, 3:58 PM
    • 74 Posts
    • 26 Thanks
    feekerry
    • #5
    • 12th Apr 18, 3:58 PM
    • #5
    • 12th Apr 18, 3:58 PM
    Iíve finished my dmp now but recently remortgaged whilst still on my dmp probably with the same lender you are talking about, tho my rate was lower. Any arrange to pay markers will last on your file for 6 years after the last payment so will be evident to a lender. If they are definitely all defaults and not arrangements to pay then unless you are asked for bank statements that show the dmp payment Iím not sure how a new lender in 2 years would know about it??
    • kingstreet
    • By kingstreet 12th Apr 18, 4:11 PM
    • 33,188 Posts
    • 17,925 Thanks
    kingstreet
    • #6
    • 12th Apr 18, 4:11 PM
    • #6
    • 12th Apr 18, 4:11 PM
    I am in dmps with all creditors
    Originally posted by doozeruk
    I suspect you mean payment arrangements. You would have only one DMP supervised by a third party, perhaps StepChange or PayPlan.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • doozeruk
    • By doozeruk 12th Apr 18, 7:12 PM
    • 249 Posts
    • 83 Thanks
    doozeruk
    • #7
    • 12th Apr 18, 7:12 PM
    • #7
    • 12th Apr 18, 7:12 PM
    I suspect you mean payment arrangements. You would have only one DMP supervised by a third party, perhaps StepChange or PayPlan.
    Originally posted by kingstreet
    This makes me wonder whether I am actually paying a true DMP as there are no third parties involved only the companies that bought the debts from the original defaulters. PRA and Cabot own 4 of them. I was never instructed to pay up, instead with the help of the Citizens advice I wrote to each credit card company and offered to pay what I could afford with an income/outgoing expense sheet. These were all accepted and hence I've never overpaid on any of them. Eventually the debts were sold on to the mentioned above and I continued to pay at the original rate.

    Feekerry, are you saying that although my defaults fall off my Cf this year it will take a further 6 years for the evidence of being in an arranged payment after settlement to fall off too?

    Thanks to everyone for your answers
    The early bird may get the worm, but the second mouse gets the cheese.
    • feekerry
    • By feekerry 12th Apr 18, 7:54 PM
    • 74 Posts
    • 26 Thanks
    feekerry
    • #8
    • 12th Apr 18, 7:54 PM
    • #8
    • 12th Apr 18, 7:54 PM
    If they are proper defaults then they drop off 6yrs after default date. All good. However if they are arrangements to pay then they drop off 6 yrs after you make the final payment. On my dmp I had 5 creditors. All sold the debts, 3 were defaulted. The other 2 were marked as arrangements to pay, this means for me the defaults finish this year but the 2 that are marked arrangements to pay will now be on my credit file for 6 years since I made the final payment in February. I wish I had pushed the 2 companies to default me like the others at the time but I thought it was worse but in hindsight it wouldnít have been
    • feekerry
    • By feekerry 12th Apr 18, 7:55 PM
    • 74 Posts
    • 26 Thanks
    feekerry
    • #9
    • 12th Apr 18, 7:55 PM
    • #9
    • 12th Apr 18, 7:55 PM
    You are effectively doing a self managed dmp
    • doozeruk
    • By doozeruk 13th Apr 18, 7:50 AM
    • 249 Posts
    • 83 Thanks
    doozeruk
    Okay thanks I think that clears that up then. All the markers on my CF are listed as 'DF' so would assume that they will all be gone very soon.

    Now as long as the underwriters approve everything I need to start writing full and final settlement letters!
    The early bird may get the worm, but the second mouse gets the cheese.
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