Chances of remortgage

[feekerry]

So I fell into a debt cycle in 2012 after falling pregnant unexpectedly and not planning mat leave properly. It was bad for a while but I ended up sorting with a dmp with step change. The debt was mine only so dh unaffected and to this day has a good credit history. I have 4 defaults from the companies involved in dmp. Companies defaulted me in 2013. One is now paid off and 3 remain. Normal high street mortgage and bank accounts have always been paid and no issues there.
We have 2 kids in a tiny 2 bed house that is falling apart. We neeed another bedroom, some major home improvements such as boiler etc. We have quite a lot of equity in the house and was thinking about trying to release some to extend and to pay off outstanding dmp.
Haven't approached our current lender as a high street one. Do you think it's an impossibility?

Are you still on the dmp? I was told no one would offer a mortgage to someone on a dmp. I would try London & country brokers to see what they think.

Yes I am tho I was hoping to remortgage to repay what was left on the dmp and be done with it? So it would be gone and finished

It's always worth talking to your own lender especially if affordability is good and you have a lot of equity.

If you can explain why you ended up in debt and point out that you continued to pay your main mortgage and other bills on time, you might have a chance. You would have to hope that they look at your application manually rather than relying on a 'computer says no' approach but what do you have to lose?

The oft quoted 'if you apply for credit and it is refused you have scuppered your chances with all other lenders' anecdote is bollocks but before applying the only thing to check is that you aren't subject to a non refundable application fee.

If you go to a broker bear in mind that if you end up on a sub prime product it could be much more expensive than your current interest rate, which could cost thousands extra over time.

The debt was mine only so dh unaffected and to this day has a good credit history

Hang on a minute. Was the debt incurred by you blowing money you didn't have on extravagances that you didn't need and dh didn't benefit from? Or was it incurred because you were expected to keep on contributing 50% of household expenses despite your income dropping to smp level? I suspect the latter.

Sounds more like a case of financial abuse to me. As soon as you went on maternity leave you and dh should have switched to an "all money is household money" model. How dare he leave you bearing the full burden.

No. It was mine. I incurred a large (very large) vets bill for a horse I owned. It was 50/50 as to whether the insurance company would cover it. And they didn't. I then ended up taking more credit to pay credit then when I went on mat leave couldn't afford any of it. I then hid they debt issues i had. It did then all come out as these things do and dh helped me by repaying some of the debt, hence why one of the defaults is now satisfied.
Had I been more upfront about the issues it could have probably been dealt with differently x