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  • FIRST POST
    • shofor
    • By shofor 10th Oct 16, 4:05 PM
    • 3Posts
    • 0Thanks
    shofor
    Joint Mortgage after DMP
    • #1
    • 10th Oct 16, 4:05 PM
    Joint Mortgage after DMP 10th Oct 16 at 4:05 PM
    Hello,

    Ok so I am looking for some advice as I want to plan for the future and my lack of knowledge is stressing me out!

    I currently live with my boyfriend in his flat (which he bought 2 years ago) He has a perfect credit record. I on the other hand am currently on a DMP and have been for a year. The good news is that I will have finished my repayments at the beginning of next year!

    I know the defaults will remain on my credit file for 6 years (so 5 years from now as it is from the time they were first defaulted) My question is...in the next 2/3 years my boyfriend and I will be looking to buy a bigger home. Ideally we would like a joint mortgage (he earns £32k and me £23k)
    So in an ideal world we should be able to get a decent mortgage.

    However is there any chance of this happening as I will still have an awful credit rating....would it be better to accept a lower mortgage just under my boyfriends name and then look at adding me onto it or getting a new mortgage when my credit rating has been cleared?

    Or will any lenders accept us both for a joint mortgage but perhaps with a really high interest rate?

    Any advice would be greatly appreciated!

    Thanks
Page 1
    • David White
    • By David White 10th Oct 16, 4:14 PM
    • 664 Posts
    • 290 Thanks
    David White
    • #2
    • 10th Oct 16, 4:14 PM
    • #2
    • 10th Oct 16, 4:14 PM
    Realistically if you're looking to do this in 2/3 years time there's no merit in speculating what's possible today as anything and everything could change.

    No doubt there would be lenders available at that time but for now I'd just concentrate on saving up a big deposit and keeping your credit profile as clean as possible.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ap1985
    • By ap1985 10th Oct 16, 4:15 PM
    • 265 Posts
    • 106 Thanks
    ap1985
    • #3
    • 10th Oct 16, 4:15 PM
    • #3
    • 10th Oct 16, 4:15 PM
    There may be lenders out there who are willing to accept you but you may have to settle for a higher interest rate. I was in a similar position to yourself and was told that majority of lenders require you to be out of your DMP for at least 12 months.

    How many defaults and late payments do you have your credit file? I assume you don't have any CCJs?

    Have you got a good deposit to put down?
    • shofor
    • By shofor 10th Oct 16, 4:26 PM
    • 3 Posts
    • 0 Thanks
    shofor
    • #4
    • 10th Oct 16, 4:26 PM
    • #4
    • 10th Oct 16, 4:26 PM
    Thanks for your replies, so do you think that it would still be better to attempt to get a joint mortgage rather than my partner applying for one alone?

    No I have no CCJ's 3 defaults and one part default and 3 late payments at the moment although hopefully the late payments shouldn't show in 2/3 years time?

    We hope to have a joint deposit of just under 20k in a couple of years time potentially more (I plan on trying to save the money that I would have been paying towards my DMP)

    The bigger the deposit the smaller the mortgage we would need and therefore maybe more likely to get accepted?
    • ap1985
    • By ap1985 10th Oct 16, 4:51 PM
    • 265 Posts
    • 106 Thanks
    ap1985
    • #5
    • 10th Oct 16, 4:51 PM
    • #5
    • 10th Oct 16, 4:51 PM
    I had similar number of defaults on my credit file and 1 late payment. I had been off my DMP for a year and got a mortgage offer (although my defaults and late payment was 5 years old). I wouldn't rule it out but as David White mentioned in 2/3 years time things can change. Your best bet would be to speak to a mortgage broker and they will be able to advice you better.
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