Silly question.....

kittykat100

Hi peeps,

This is probably a really stupid question but I will ask anyway!
I am entering into a DMP with Payplan :j however this is the situation. I live with my partner in rented accommodation and we pay £750 per month. However I was wondering what chance there would be of getting a mortgage with my partner who is also on a DMP?
Does anyone have any experience of this or will we just be stuck forever more without owning our own home. My divorce will be completed in a couple of months and my partner will be filing for his in December. For obvious reasons we don't want to look at buying anywhere until the divorces are through.

Thanks guys

Kittyx

kittykat100

Guys... anyone?

This is a genuine question, I dont want to be spending money on rent forever.!
Kittyx

Floss

Sorry honey, not on DMP & don't have mortgage plans at the moment

kwisstan

unfortunately I don't know the answer to that. I would have thought no to a mortgage and DMP, but I would wait for a more experienced person to answer.

CLAPTON

yes, it is possible to get a mortgage while on a DMP. It will be best to go via a specilist mortgage broker....Payplan will be able to advise you.

frankie1_2

I have a DMP and use Payplan.
They have told me that it is possible to get a motgage. I have re-located with my work several times. Only started my DMP this month though:o

Debt_Free_Chick

I think it depends on what your creditors do. Some of them will issue default notices and report this to the credit reference agencies. Others might report arrears to the CRAs.

However, some mortgage lenders seem to be quite sympathetic.

I think you should expect some difficulties, but you won't be "stuck forever more without owning our own home".

You should not, of course, even think about a mortgage until you've paid off your debt, though.

HTH

CLAPTON

for the avoidance of doubt

being on a DMP will trash your credit record

but while on a DMP you can still get be able to obtain a mortgage although you may well pay a higher interest rate than good credit risks.

payplan will be able to advise; also see the following

http://www.whoslending.co.uk/

Emmzi

I would post your question on the mortgage board. Mortgage Momma and Andrew Smith seem to be good people to ask :-)

kittykat100

Thanks for your replies, mucho appreciated

Kittyx

Iriahm

hey, I was on dmp with payplan but now do it myself. Currently have a small mortgage £34k outstanding (shared ownership) but am in the process of buying a property with OH. DMP causes issues but my lender for own flat has been exceptional (Abbey...gobsmacking, I know!) and basically are porting my existing mortgage into the new one and taking OH's earnings into account.

It is possible to get mortgage but you will have to hunt and most "mainstream lenders" won't be interested. I'd try and find a shared ownership to get onto the property ladder without over-mortgaging yourself. You then have the right to buy the remaining % of the property when you can afford it, or sell your % on the open market.

Alternatively, you could give yourselves a set period of time to save for a large deposit (20%+). This means you can approach mainstream lenders as their risk is not as great.

good luck!