Debt Repayment Plan

Posted on 21 April 2010 by Rachel

I am paying back a debt through CCCS debt management plan. I have been paying for two years and have approx 4years to go. I have a mortgage now, will I be able to remortgage in the future?


There is no doubt that your debt management plan will make it harder to remortgage in the future. At least whilst it remains on your credit file, which is usually for 6 years.

At the moment you may be better off staying where you are, depending on the interest rate your mortgage is on and/or reverts to at the end of any special rate period.

If you do wish to remortgage now, Lenders need a reason to lend to someone in your position where the past history suggests that perhaps they shouldn't. This may be an excellent payment record on your existing mortgage, a small loan requirement in comparison to your income or in relation to the value of your property. If you are able to demonstrate your ability and willingness to pay your mortgage this will stand you in good stead to secure a new mortgage.

I recommend that you speak to an independent mortgage broker who should be able to look past the usual High Street Lenders and find a competitive deal for you.


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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