Can i get a mortgage whilst i'm in a debt management plan?

trudie_hill

Really want to get back on the property ladder, and have the oppertunity to lend a deposit off a family member, but dont know if i should bother looking into it and get my hopes up if getting a mortgage whilst i have a debt management plan is out of the question!?

Also, how long do you have to have been 'off the ladder' before being classed as a 1st time buyer again?

opinions4u

Is it really fair to your existing creditors?

You owe others money. Deal with that before taking on new debt.

trudie_hill

And do you not think i am wasting money paying rent when i could buy a property to secure a future for my children and maybe increase the value of the house re-mortgage and then pay off the debts??

davilown

You cant afford a mortgage - you have shown that by being on a DMP. Yes you pay rent but why on earth would you expect a company to lend you money when you can't pay back other companies now. You got in to debt - sort that out first. If you have a deposit for a house then use it to pay off your debts. You'll be in a much better position to buy when you can afford to buy.

Reference FTB - you can't be classed as a FTB if you have already owned a property however long ago.

catieeb06

Depends on how it's reflected on your credit file.

If it's shown as a DMP and you have defaults left, right and center, then in a word: NO!

opinions4u

trudie_hill wrote: »

And do you not think i am wasting money paying rent when i could buy a property to secure a future for my children and maybe increase the value of the house re-mortgage and then pay off the debts??

Property ownership guarantees nothing. Getting in to more debt will not secure the future of your children.

There is little to suggest house prices will increase.

There is almost certainly a condition in your dmp that prohibits new borrowing.

There probably isn't a mortgage lender in the country who would want to lend to you.

And who can blame them?

Sorry if that's not what you want to hear.

trudie_hill

I dont have the cash for the deposit a family member does and they will only give it for a house deposit

The situation we are in with our debts and paying rent is clear to me.... a mortage would be over £100 per month cheaper for us in the area we live enabling us to give this extra disposable money to our creditors and get it paid off quicker.

We are not free loaders, dont judge before you know all the details, were hit a very difficult period in our lives a few yrs ago which has put us in a difficult position now... we could have gone bankrupt but believe it is our right to payoff what we owe as much as we can afford, in my opinion getting our own property would make things alot better as i said above...

this was obviously the wrong place to come for help/advice/support

trudie_hill

We have no ccjs and never missed payments only made smaller ones than required

ViolaLass

trudie_hill wrote: »

this was obviously the wrong place to come for help/advice/support

Not being told what you want to hear is not the same as not getting advice.

dunstonh

this was obviously the wrong place to come for help/advice/support

You are getting it. You are just not listening to it.

gemmacantan1

Hi,

I've previously been on a dmp and unfortunately could not secure a mortgage because of the defaults that were created due to taking the plan out. I have 1 year left before they will be removed from my credit profile and I can start thinking about moving. Been stuck in a small two bedroom house for 6 years with two kids etc but my own fault. Got into debt by taking on to much too soon.

6 years from when you get defaulted! And it will feel like an eternity. I'm sorry to have to be so honest, but I was devestated as I wasn't made aware when taking out the DMP that I would be defaulted, only one out of the 5 didn't default me. But I will never get into debt again, I've learnt my lesson.

Just continue to pay it off!

Hope that helps

Gemma