Debt Management Plan

Posted on 25 January 2011 by Amanda Lyon


I am on a debt management plan and my fixed rate mortgage term ends in July 2011 what are my options with regard to obtaining a further fixed term.

Amanda,

I think that you would be best placed asking your Lender what deals they have for existing borrowers coming to the end of their fixed rate period. The majority of Lenders now have either special loyalty rates or allow you to choose from any of their current new business range. This will avoid any problems arising from your credit record.

Depending on your exact circumstances, I would expect you have trouble securing a new mortgage at a competitive rate and you even if your existing Lender can not offer you a new fixed rate, you could well be better of remaining with them on the follow-on variable rate applying to your mortgage.

I recommend that once you have spoken to your existing Lender, you talk to an independent mortgage broker and see if they are able find a better mortgage product for you.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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