Trying to get a mortgage with a DMP

Max2008_2

Can anyone advise me where i could geta mortgage with a DMP ? i have been in the plan for nearly 2 years and everything is being paid on time. My husband has a good credit history and we'd like to have a mortgage together. will anyone look at us though because of my history? any advise would be good.

beecher

Depends on so much - available deposit, salary, salary multiple of mortgage. Maybe best to see a mortgage adviser to talk you through it?

seeya23

try ge money

_Andy_

Max2008 wrote: »

Can anyone advise me where i could geta mortgage with a DMP ? i have been in the plan for nearly 2 years and everything is being paid on time. My husband has a good credit history and we'd like to have a mortgage together. will anyone look at us though because of my history? any advise would be good.

How much deposit have you got saved up and what kind of property values are you looking at?

Cheesedoodles

Just want to add that I am in the excactly same position as you! My wife has been on a DMP for 1 1/2 years but I'm squeeky clean.

Seems like there are a lot of people in similar positions so if there are any mortgage advisors on could you let us know your experiences?

And seeya23, GE money has a typical APR of 11% on mortages. Sorry, but anyone in their right mind wouldn't go for such a mortgage. I understand people like "us" are higher risk...but not 11%!

worrygirl

Hello!

We are in the same position although both of us are on DMP's

going on the DMP's is the baest thing we have done but really want to pay into our own home and not on rent...

many thanks...

ILW

Am I missing something here?
Surely being on a DMP shows someone is unable to service their existing commitments, why would someone in that position be looking for further large borrowing?

worrygirl

Because we are managing our debt now and if we can afford to have a mortgage while still paying off our debt at the agreed amount I dont see the harm in it? For the record we have full intention of paying the debt off and have paid a lot off already. The fact we decided to actually pay the debt off with a DMP and not do an IVA i feel also shows this. I got myself into this and I will get myself out of it.

[Deleted User]

worrygirl wrote: »

Because we are managing our debt now and if we can afford to have a mortgage while still paying off our debt at the agreed amount I dont see the harm in it? For the record we have full intention of paying the debt off and have paid a lot off already. The fact we decided to actually pay the debt off with a DMP and not do an IVA i feel also shows this. I got myself into this and I will get myself out of it.

Except...you're not. You're not managing the same debt. It's a reduced debt.

You're making reduced payments on a DMP. You're not repaying the full debt off - you're paying a reduced amount off.

It's like saying "I borrowed £1000, but couldn't afford to pay it, so the lender agreed I only need to pay £100 back. I can do this fine, so I want to borrow another £1000".

You couldn't afford to borrow it in the first place, hence the DMP!

You're trying to use relative arguments to justify what is, in effect, unjustifiable.

If you can afford to pay more towards a mortgage, then you're under an obligation to notify your creditors and make increased payments to them first.

Put it this way. Say you lent £100 to a friend and they told you they couldn't afford to pay it back, so you said 'fine, just pay me a tenner'. If you saw them the next day with a flash new car, you'd be annoyed, right?

itsnowtime

I think we all need to be very careful about making rash judgements here..

There are many reasons why people feel the need to undertake a DMP and in this instance we are not fully aware of the circumstances around the decision for undertaking a Debt Management Plan.

It's not all about the fact people have borrowed the money for the sake of it knowing they can't afford it - which is how i'm reading some of your responses!

Many people feel the need to undertake a DMP due to redundancy, change in personal circumstances eg. relationship breakdown / divorce and often find that although they have fully serviced their debts up to this point life becomes harder. So.. they take a 'pro-active' approach to managing the debt - hence a DMP.

In terms of Mortgages - it may actually be 'cheaper' (in terms of monthly outgoings - not long term interest before you shoot me down!) for the individual to 'buy' rather than rent.

I wouldn't say getting a mortgage will be easy and in fact you are likely to struggle as _Andy_ stated it depends on the amount of deposit / LTV etc...

Speak with a whole of the market broker to find out your chances.

And.. well done for being pro-active about managing your debts - it's refreshing to see people actually willing to repay what they've borrowed rather than try and ignore it or use the legal loopholes!

Good Luck x

NAR

What also should be worrying for those on DMPs is that interest rates are at their lowest levels ever; property prices are showing signs of recovery, which will probably mean that interest rates will start to creep up - maybe not immediately, but say in two years time. Are people on DMP's going to be able to afford payments that are only likely to go up?
Just thoughts for consideration.