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    • ramblehan
    • By ramblehan 14th Feb 18, 3:33 PM
    • 494Posts
    • 1,057Thanks
    ramblehan
    DMP & mortgage query
    • #1
    • 14th Feb 18, 3:33 PM
    DMP & mortgage query 14th Feb 18 at 3:33 PM
    Hi,

    Hiya. Hope everyone is well in DMP land.

    I currently have a Self managed DMP due to a bad patch we went through about 2 years ago. Debt is approx £20K. We have had a turn-around in finances, with both of us getting much better paid jobs, and free childcare kicking in shortly, so I am hoping to start putting money aside to pay down debts sooner. Debts were only defaulted in late 2016, early 2017.
    We hope at some stage to go for a mortgage again at some stage - before these debts are going to disappear from our credit file.
    My question is this - am I better off to settle these debts in full so I get a paid in full marker on my file, rather than making F&F offers and getting a partially settled marker. I presume the PS marker would stay on my file until 6 years from default date, and that this might look worse to a mortgage broker?

    Thanks.
Page 1
    • ACG
    • By ACG 14th Feb 18, 3:41 PM
    • 16,323 Posts
    • 8,436 Thanks
    ACG
    • #2
    • 14th Feb 18, 3:41 PM
    • #2
    • 14th Feb 18, 3:41 PM
    It really depends on a number of different things. If you satisfy it in full, you will have more options and potentially better rates.

    However, it will cost you more in to satisfy them.

    You need to see what the difference in Mortgage rates will be compared to the what you need to pay on the DMP.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
    • ramblehan
    • By ramblehan 14th Feb 18, 3:59 PM
    • 494 Posts
    • 1,057 Thanks
    ramblehan
    • #3
    • 14th Feb 18, 3:59 PM
    • #3
    • 14th Feb 18, 3:59 PM
    Good point, thank you.
    I presume I will still need to go via a specialist broker? Is there any advice on how to pick a good one?
    • ACG
    • By ACG 14th Feb 18, 4:13 PM
    • 16,323 Posts
    • 8,436 Thanks
    ACG
    • #4
    • 14th Feb 18, 4:13 PM
    • #4
    • 14th Feb 18, 4:13 PM
    It is probably not a bad idea to go with one with experience in adverse. Have a chat with one or 2, you will probably be able to weed out the ones who have little experience, you may even find some outright say they can not help.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
    • Thrugelmir
    • By Thrugelmir 14th Feb 18, 5:54 PM
    • 57,479 Posts
    • 50,773 Thanks
    Thrugelmir
    • #5
    • 14th Feb 18, 5:54 PM
    • #5
    • 14th Feb 18, 5:54 PM
    I presume the PS marker would stay on my file until 6 years from default date,
    Originally posted by ramblehan
    Will leave a permanent mark on your record with that particular lender. Once bitten twice shy as the saying goes.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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