Mortgage with a DMP?

A question about : Mortgage with a DMP?

We are 2 years into a DMP which is running well, but we decided that we need to be out of debt quicker.

Luckily we have some collateral in our home and have just accepted an offer for the house which will give us enough to clear the DMP and move to a new home with slightly less mortgage.

I am really worrying - we plan to clear all debts through the sale of our home but will we get another mortgage. Our income is higher than when we took this mortgage on, and we only got into debt being stupid with credit cards and loans (never again) so in theory we can easily afford the lower mortgage.

Has anyone experience of clearing their DMP through moving house and getting a new mortgage in the process?

Best answers:

• Often your own mortgage company may be the best option.
  Will the ltv on the new place be the same as the existing one? or will you be looking for a higher ltv?
• Roughly the same LTV.
  Unfortunately I have just got off the phone from our current lender who declined us because we failed the credit checks.
• In that case I would seek advice from a mortgage broker about which lenders may consider an application from you and what likely costs/rates you may be accepted at.
  May well be worth taking along copies of your credit files from each of the 3 credit reference agencies to the broker.
• Sounds like you are classic catch 22. If you really must own your home then it could be the only solution is to stay where you are and carry on with the DMP and the current mortgage.
  Maybe a solution is let the sale go through and rent for a couple of years while you clean up your credit history before applying for a mortgage again?