Can I get a bigger mortgage given my debt management plan?

Abstract

I owe about £96,000 on the mortgage but also have another secured loan of £38,000. My question is: would I be able to get the bigger mortgage that I would need?Is there any hope? I was also wondering whether I should sell up and rent for a while before trying to get another mortgage. Or has my credit history scuppered any chances of buying a bigger place? AMA Yes there is a very modest amount of hope but it will involve a bit of a wait and the use of a specialist mortgage broker. According to Pete Mugleston, of onlinemortgageadvisor.co.uk, "You can get a mortgage with a debt management plan but it very much depends on your personal circumstances. One of the most important things that lenders will look at is whether or not the DMP is active and, if not, how long ago it was satisfied."If you are currently managing debts as part of a DMP, then your options are going to be a lot more limited as the majority of lenders, especially high street banks, won't consider an unsatisfied DMP."Those lenders that will consider mortgage applications from people with active DMPs will usually require your active DMP to have been in place for at least 12 months and to have been managed responsibly. Even if you wait until your DMP has been in place and well-managed for 12 months, the likelihood of you getting a bigger mortgage are slim. With a cash deposit of £18,000, that would mean a total property value of £72,000 with a maximum mortgage of £54,000. The maximum mortgage would be even smaller if part of the £18,000 needs to be used to pay legal and other fees.