1st time buyer debt advice

misskate

I am in a Debt Management Plan but hoping to get a mortgage i understand that being in a DMP makes this more difficult so before i make any applications and make my credit file worse i was hoping for advice on where to start ?

andys15

I would say you would struggle until your DMP is finished and however many years it takes to leave your credit file.6 years after paying your DMP.

Beast

Have to agree with Andy I'm afraid. Being on a DMP will mean that you have defaulted on your credit agreements and most likely will have to wait 6 years after they are settled before you will be considered for a mortgage.

boblardo

Not an expert but going on the advice I have been given why would you want to get a mortgage while you cannot even make payments to your creditors! If you have spare money available you really should look at putting that into paying off your debts

themull1

Banks are so picky about lending money now, you wouldn't get a mortgage.

MrsTinks

Second the advise above... You need a decent deposit to get a mortgage that isn't at insane rates - if you have those levels of savings then you should be using them to pay off your DMP debts. Then give it a couple of years to rebuild your credit rating and put a deposit together.
CAN you get a mortgage whilst in a DMP? Probably... but will it be at a rate that isn't crippling even someone with a healthy income and no debts? Very doubtful.

Shoe_Gal

Please can somebody clarify - does a default come off 6 years from issue or 6 years from settlement? Thanks

DarkConvict

6 years from the day the default was issued.

As to the DMP question, any decent DMP provider will stop running your DMP if you get credit, so there is no point in even applying whilst still on a DMP because you will be going it alone. As to the credit rating defaults last 6 years and late payments 3 years. So you need to give it atleast 6 years from when the DMP started and upto 3 years after the DMP ended to get a cleaned up file. Without a decent file you will be stuck with high interest rates you will regret. Wait a few years then get a mortgage. A mortgage lasts along time so you must time it right.