Can I get a mortgage while on a DMP?

adindas · 13 March 2018 at 12:16AM

I echo the other posters.

In this circumstances, DMP, strugling to pay the rent of £700. The chance of getting mortgage is next to none. But people do win a lottery, do not they. So they could always try their luck.

If the argument is just because the montly payment of the mortgage is likeky to be the same with renting, it will also mean, anyone currently living on benefit where the rent is higer than the mortgage monthly payment could also get a mortgage ?

ACG · 13 March 2018 at 11:10AM

I know what lenders assess repayments on.

£700 rent is one thing.
An £80k Mortgage at 7% over 35 years is a little over £500 a month. So near enough £200 a month less, however in the real world it could be as low as £400 a month with the adverse, meaning our OP could in 2 years be £6-7k better off.

So again, I refer back to the point of you have no actual figures to work from. I am not saying you are wrong, I am just saying it is like doing an equation with no numbers.

Can you not have a conversation without trying to sling mud? Ridiculous. Grow up. Without knowing me or us as a company it is a little unreasonable to start calling names.

We have no targets, all of our customers have access to their advisor and me. We vet our customers to ensure we are a good fit for one another, ie we do not take on business because we need to - we are successful and have no need or wants to be placing business that would put the customer in a worse position. I like sleeping at night and would not do that knowing I am putting people on a ticking timebomb.

ACG · 13 March 2018 at 11:14AM

John-K wrote: »

It’s a virtual certainty, given the facts that they posted. Do you honestly believe, with the numbers given, that it was wrong to mak the very sensible conclusion that you seem so upset by?

This is my point, there are not enough numbers.
I am not upset by anything. I am very open to the fact I could be wrong/everyone else is right. All I am saying is that there is not enough information to give a definitive answer. By telling someone something can not be done, the OP may just knock it on the head.

I am not one for analogies as they are always wide of the mark, but think about that person who went on dragons den with those kids cases on wheels and was told to forget it. He is now a multi millionaire.

All I am saying is that we need more information or go and speak to someone who will take in to account all of the information and give them an informed decision.

The mortgage (even at 7%) could be significantly less than rent. The deposit could be a gift. But we do not know.

System · 13 March 2018 at 6:16PM

ACG wrote: »

I know what lenders assess repayments on.

£700 rent is one thing.

Quite clearly you don't then given that they disregard what rent you're currently paying as you'll not be renting any more when you buy.

An £80k Mortgage at 7% over 35 years is a little over £500 a month. So near enough £200 a month less, however in the real world it could be as low as £400 a month with the adverse, meaning our OP could in 2 years be £6-7k better off.

If they're paying £700 a month in housing association rent they're not living in an area where they can buy a house for £85-90k or even £100k are they?

As for the £200 a month less......

Subtract £15 a month for gas appliance cover, £15 a month for life insurance for the mortgage, £20-£30 a month for buildings and contents insurance. Given how tight their finances are currently if something were to happen and a repair came up which had to be done, how are they going to fund it?

ACG · 13 March 2018 at 6:42PM

If they're paying £700 a month in housing association rent they're not living in an area where they can buy a house for £85-90k or even £100k are they?

I have no idea and neither do you. Yet another assumption you have made.

As for the £200 a month less......

Subtract £15 a month for gas appliance cover (I do not have this), £15 a month for life insurance for the mortgage (not a requirement), £20-£30 a month for buildings and contents insurance (only buildings insurance is a requirement and I am sure the price comparison sites can do it for less than £20 a month). Given how tight their finances are currently if something were to happen and a repair came up which had to be done, how are they going to fund it?

With the £200 a month they are saving on the rent? (That I have for the sake of this thread, assumed they could be saving).

I think I need to bow out of this conversation as we are debating about something that neither of us know enough about.

Can I get a mortgage while on a DMP?

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