remortgage while on a debt management plan

[bluebluecow]

Does anyone know if this is possible? we have a debt management plan which has been in place for some time with Payplan. We owe just under £30k on it. We also have a repayment mortgage for £120k which has been in place for over 7 years and has about 22 years to run. We have never missed a payment on this. We have a low rate of interest on our repayments at the moment as we are on a brt with Birmingham Midshires. We have about £50k equity in our property. We would love to downsize to reduce our mortgage loan and make offers to clear our debt on our DMP as at the moment we will be paying DMP for such a long time to clear all debts. I have phoned BM who have said we can port our product and keep the rate but would have to apply for the mortgage all over again which would include credit searches and proof of employment. DH is self employed with no real proof of any decent income as he has struggled for work for a while. I work 24 hours a week on an okay wage but not enough. I can't see a good way out for us. Tax credits have been a godsend but they are not really taken into account when applying for a mortgage are they? I'm really clueless but would love to be in a smaller place. Where we live we could find somewhere where we would only need a £60k mortgage on top of our equity instead of a £120k one. Wish I'd never taken out one this large but at the time everything was different

We've just failed to find anyone to give us a remortgage I work 4 days a week, dh self employed (but low income) We have a good credit rating but my income wasn't enough for anyone to lend us the £90k we needed to do the remortgage. At first we were told they would take tax credits into account but eventually they wouldn't.

We've remortgaged every 2 yrs since 1996 without a problem, this is the first time we've ever been turned down - it was a bit of a shock as we'd been hoping to consolidate some debts.

Sorry this probably isn't not what you wanted to hear but like you said, things aren't how they used to be any more. It's still worth asking the question though, there may be a way round it - can the debt charities help?

We have been turned down for a remortgage too. No change in circumstances, no change in mortgage amount we just wanted a better deal now our fixed rate has ended and we were turned down because their affordability rules have changed

I would speak to an independent financial advisor, I don't know if it's possible but since you have equity in your property they might be able to do something to help and what you're suggesting seems sensible

thanks for the replies. The outcome we would ultimately like would be to pay debts off and borrow less not more than we have at the moment. Seeing that we have never missed a payment on our large mortgage we would definately not on a smaller one......but I know they probably wont look at it like that unfortunately