Re-mortgaging with a DMP

smithyv · 13 August 2018 at 12:58PM

Hello everyone, I am new to the Forum and wondered if anyone had any advice.
I have just completed Year one of my DMP with Stepchange (total debt was 44K) I split with my husband 4 years ago and bought him out of our home (I had no debt then), taking on a 130K mortage - the property is valued at around 170K.
The mortgage was a 5 year fixed rate and will need to be renewed in March 2020 - so i guess my question is has anybody renewed their mortgage whilst in a DMP and if so was it a struggle? I know its just over 18 months away and by that time my debt will be around 24K, but its constantly on my mind what if i cant re-mortgage my home? (i have never missed a mortgage payment)
thanks all!

UncannyScot · 13 August 2018 at 1:32PM

Hi
I've passed this on to the good folks on the DMP support forum so hopefully someone will pop in shortly with some advice and info.

Puzzcat · 13 August 2018 at 3:02PM

Hi,

As long as you take out another mortgage with the same provider it shouldn't be an issue as they don't credit check you. I have done this with Nationwide whilst on my dmp.

Puzz

smithyv · 13 August 2018 at 3:04PM

thanks, was it a higher interest rate or did you get a good deal

another_casualty · 13 August 2018 at 3:06PM

The best thing imho , is not to remortgage but to stay with your current mortgage provider and either go on their variable rate or possibly fix it with them for another term if you feel inclined to do so.
Make sure you do not take out any additional borrowing .

All the best

Puzzcat · 13 August 2018 at 3:29PM

smithyv wrote: »

thanks, was it a higher interest rate or did you get a good deal

I just picked a new fixed rate deal online same as I have always done.

Puzz

Suseka97 · 14 August 2018 at 8:43AM

Do as has been suggested and stick with your current provider. We moved onto a new fixed term deal with Nationwide recently, did so online and it all went through very smoothly. We got a slightly lower rate, certainly one we were happy to settle on and by the time that term finishes we'll be debt-free and our credit file should look a little more healthy (defaults will be gone etc.)

I doubt you'd be able to get a good alternative (re-mortgage) with another provider and certainly wouldn't get offered decent rates, so your choice is limited. I'm sure you'll get another good deal with your current mortgage provider.

smithyv · 14 August 2018 at 11:23AM

Thanks - i just wasn't sure how it worked, would HSBC (current broker) take one look at my current credit score and think no chance! so i was concerned that i wouldn't be able to re-mortgage after my 5 year fixed rate with a high interest mortgage or worse still lose my home because of it.
Oh the stress! 1 year down 4.5 to go, wish i could stop beating myself up about it. thanks for your advice

Re-mortgaging with a DMP

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