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Get a Debt Management Mortgage
If your on a debt management plan and want a new mortgage, often termed as a debt management mortgage or you want to remortgage we could have the answer.
Debt Management plans have been around for many years and in most cases are a welcome change of pace for p
eople struggling with debt. They can help get your finances under control and will allow you to pay one affordable monthly payment which will then be distributed to your creditors thus alleviating stress and helping you get back in control of your finances.
Debt management mortgage advice
The downside to debt management is that, in order to arrange lower monthly payments with your creditors, the original credit agreements usually have to be defaulted which will affect your credit worthiness and credit score. Whilst on a debt management plan there is also no guarantee creditors will stop adding further interest or charges and there is no guarantee your creditors will not take further action.
Applying for a mortgage whilst on debt management, sometimes called a debt management mortgage need not be as confusing as it sounds but there are a few things you should take care to get right.
Debt Management Mortgage - is it right for you?
A good exercise is to work out how long it will take to repay you debt management plan at your current levels, if you will have the debts repaid within the next few years its probably not worth your while consolidating them into a mortgage. From our experience a typical debt management plan would, for example, look something like this - a total of £35,000 owed being repaid at £85 per month (taking approximately 34 years to repay, and that’s if the debts don’t increase with interest charge) to work this out for your debts simply divide the total owed by the monthly repayments then divide by 12, even if you do not want to clear your debt management plan it may be worth working this out for yourself.
The vast majority of lenders who lend to people with adverse credit do not deal directly with the public, due to the complexity of adverse credit mortgages and the financial circumstances relating to an individual on debt management or with bad credit they tend to deal only with mortgage brokers who, typically specialise in bad credit mortgages and bad credit remortgage's.
Apply for a debt management mortgage
In normal circumstances the more bad credit, defaults or CCJ’s you have the higher the interest rate will be – in order to ensure you get the best mortgage deal its best to use a broker who uses every lender on the market and has have access to exclusive mortgage deals not available by applying to the lender directly.
A debt management plan will also lower your credit score, the lower your credit score the more selective a broker must be in selecting the correct product, most ‘normal’ mortgage brokers who deal with mainly high street lenders will be unfamiliar with the terms associated with a debt management remortgage and will most likely find it difficult to recommend the best lender for you as a lot of what goes into recommending an adverse credit mortgage for debt management is down to experience from the broker - for example, some lender do not credit score. Some lenders will also ignore defaults completely and even ignore CCJ’s depending on the amounts, date registered and how they came about.
Baker Financial have helped many people remortgage away from debt management, we have also arranged remortgage's and kept the debt management plans in place.
Really bad credit?
You can still apply for a debt management mortgage
Many people assume they will be unable to apply for a mortgage whilst a debt management plan is in place or if they can apply it will be very difficult to remortgage without repaying the debt management plan in full. That simply isn't the case. Most adverse credit mortgage lenders will have products in place to suite people with bad credit even if they are on a debt management plan.
Applying for a debt management mortgage with Baker Financial has been made as easy as possible, our brokers complete most of the paperwork for you - they will talk you through every stage of the application and advise of any special deals or rates which may not be available elsewhere. They can also suggest ways of reducing settlement figures to your debt management plan such as applying for a ‘full and final’ or short settlement figures from the creditors which could save you money.
Gat a mortgage and stay on debt management
If you want to keep your debt management plan in place but want a mortgage or remortgage without repaying your debt management plan that’s fine, as long as everything is still affordable we would be happy to look at this for you. Debt Management plans are very good if they fit your needs, but remember, if you want a remortgage and are able to repay your debt management with a new mortgage it may well be worth while doing.
Consolidating a debt management plan into a mortgage isn't right for everyone, each person has an individual set of circumstances, requirements and budget which need to be taken into account, however we have helped many people remortgage out of debt management, bad debt and adverse credit, clearing their bad credit once and for all. It is worth noting that there are various other options available for people with debt problems and debt consolidation is just one of them - sometimes it may be better to stay on a debt management plan or contacting your creditors personally to come to an agreement regarding monthly payments, both of which may be an option for you depending on your circumstances, most options available today are very worthwhile if they fit your needs.
I want debt management mortgage help today
We keep away from industry jargon and treat clients like people, each with individual needs, budgets and requirements. The best way to find out if a debt management remortgage or mortgage is right for you is to contact us, simply complete the form at the top right of this page and we will call you back.
