DMP advice and remortgaging

[Pink Pamplemousse]

Hi, just looking for some advice really.

Over the last few years our financial situation has become somewhat tricky for various reasons- maternity leave, nursery fees, unexpected house repairs, my husband losing his job just before the pandemic and being out of permanent work for almost a year. This plus some poor financial decisions has landed us in around £25k of combined debt (loan and credit cards).

Whilst we are not really behind with any payments, we have very little left over each month and our debts just seem to be increasing as time passes.

I have been in touch with Stepchange who have recommended a debt management plan. We are seriously considering this as it will free up a significant amount of our income each month and mean we finally will have a solid plan in place for repaying the debt.

The only thing holding me back is the fact that our fixed rate mortgage comes to an end this time next year and I am worried that a DMP will affect us remortgaging. We have 19 years left on our mortgage and a decent amount of equity (approx 50% LTV).

If anyone has been in a similar situation and wouldn't mind sharing their experience I'd really appreciate it

Your own mortgage company will probably just put you straight on to their variable rate.

With regards to your DMP, do you have an CCJ's?

Have you spoken to your current mortgage company to see if you can remortgage now or take out a second loan?

I have a dmp and a joint mortgage. We have just refixed with our current lender when last fix expired, no further credit checks etc.

Yes that is normally possible with your current lender as long as you go for what they offer you (still better that the SVR). Do not try to change the length of time outstanding as that is when they will want to do further credit checks on you for suitability.

As long as you stay with your current lender. You will really struggle to port it even years after the dmp is paid off

No CCJ's thankfully.

Our own mortgage provider refused us extra borrowing a few months back on the basis of credit scoring, although both of our credit scores are good at the moment. Obviously I know if we take out the DMP that'll be out the window!

One of our loans is paid off come February and we are both due small pay increases, however it still feels like there's just no way out of it.

Thanks for the advice all, it's reassuring to know others have been in a similar position,