Who will lend to me if I'm on a debt management plan?

Posted on 22 August 2007

Hi Katie,

I am in a debt management plan with the CCCS (all unsecured debt approx. £26,000).  I have a £75,000 mortgage with Southern Pacific (it was a right-to-buy mortgage). My 2-year fixed rate mortgage finishes in Feb. 2008 and I will be looking to find a better mortgage rate etc. Who will lend to me?  I have never missed a mortgage payment in the last 3 years.

Regards

Emma



Hi Emma,
 
You have definitely have put yourself in a better position now by making all of your mortgage payments on time, as this means that you are less risk to a lender. You will still fall under the 'financially vulnerable' banner, and require a sub-prime mortgage, but it is unlikely to be on as onerous terms as the last one, because you have conducted the existing one well.  There are lots of sub-prime lenders, all of whom have different criteria for improved clients, so the first thing to do is get your revised credit file from Equifax or Experian and take it to a broker who will go through it and tell you which of the sub-prime lenders can offer you the best deal at the moment.

As you are still 'financially vulnerable' (you have an ongoing debt management plan) we would refer you to our specialist team at Charcol.  Their number is 0800 066 5575 if you would like to get started by with some figures and an idea of what's available now.  Their service is completely free by the way.

Best of luck

Katie

Categories: Bad credit, Council houses, Remortgaging

 

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