Is it possible to apply for a mortgage while on DMP?

IWILLSORTMYDEBTSOUT!

Firstly, apologies if this should be posted in another forum.

I have just entered a DMP with Payplan with unsecured debts of approx £23k. At present I'm paying £280 a month rent to my folks but within the last week have told me that they're intending to move from the area and have made it clear in a roundabout way that it's time for to move out.

At present I'm engaged and no-one knows anything about my problems and it's being forced on me from both sides to buy a house. Now, I think about £85k is the minimum I need to buy even a one bedroom flat in the surrounding area.

I think I can afford the repayments together with the DMP with the fiancee contributing too (my salary at present £18k with an imminent rise) and I'll need to check but I think my recent credit history is ok.

Does anyone know who would be best to approach regarding this as I don't know where I'm going to live otherwise.

Kevicho

i dont know the answer but i think when you are on a DMP you are encouraged to NOT get into any more debt

Logically id say no

However stranger things have happened

jitsuguy

Hi ya,

I would contact Payplan and see what they suggest. It might be better for you and your partner to rent somewhere until you are off the DMP, counting on the DMP ending sometime soonish.

Jitsuguy

tattooed_lady

If you're on a DMP your credit rating will probably be bad so it will be hard to get a mortgage from a mainstream lender. You will probably have to apply with a 'sub-prime' lender and pay a higher interest rate. Check with Payplan as the others have said as when you are on a DMP you are not supposed to get any other credit at all and they could cancel your DMP. Good luck.

IWILLSORTMYDEBTSOUT!

Trouble with renting is it would be an extra £200 a month for a place round here compared to what my friend (who borrowed a similar amount) is paying per month towards his mortgage.

DMP is due to run for approx 5 more years :eek:

Broken_hearted

Sorry to put a spanner in the works but I thought if you were getting more money you had to report it to payplan so they could adjust your payments.

tyllwyd

Would it be possible for your fiancee to take out the mortgage in her name only? You could ask the solicitor to draw up a proper agreement between you, and maybe plan to put it into joint names in the future.

It would mean you coming clean to your fiancee - but that is probably the best thing anyway, if you are going to take on a big step like moving in together. Your families wouldn't need to know who was buying the house - it is none of their business!

IWILLSORTMYDEBTSOUT!

Sorry forgot to mention that she's only got a temporary contract at the moment.

When it's confirmed that I'll be getting more per month Payplan will be advised accordingly.

dellamirandola

Would love to buy a house too - but not sure it's a great idea for you right now.

4x18 thousand is 72K - which is probably the limit of what you could borrow and that would leave you 13K short of your target even if you weren't in debt.

Hope it works out for you

kar

If your are on a DMP your credit rating will be affected - you don't get interest frozen for nothing you know!

tyllwyd

Oh, and remember all the other expenses that go with buying a house - deposit (which I assume isn't going to happen), stamp duty, survey, solicitor's fees, any basic furniture, curtains, etc etc. You are probably looking at a few thousand pounds on top of the actual mortgage.