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

hcb42

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??

You are not wasting money paying rent, you are putting a roof over your head.

The moral thing to do is pay the debt you owe other people/organisations, before getting into more debt.

DVardysShadow

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??

And maybe you could lose value on the house and end up in negative equity. Another fine mess, Stan. Renting is money well spent in these circumstances - it is the mortgage which would be dead and wasted money.

At least while you are renting, your household finances are stable, so you can work your way through the DMP to reach the position of being able to buy.

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

I don't think the advice help and support you want would be any good to you without the underpinning honesty you are dismissing

poppy10_2

trudie_hill wrote: »

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.

And what hapens when interest rates rise from their current 400-year low? Could you afford the monthly payments if they were to double from your current calculations?.

jamesd

You won't be able to get a mortgage at affordable rates while on a DMP with lots of debts in default or arrangement. If you did manage it, the rates you could get would be far above mainstream rates.

No harm to have a chat with a mortgage broker but don't expect to receive good news.

inbigdebt

I chatted to an advisor this week.... your affordability is also dependant on how much you sould be paying not what you are paying... so you may owe say £20k, and be paying £50 a month... but if these are all credit card debts, it is assumed a 5 year repayment - so around £333 a month would be your repayment if not in financial problems.....
I'm in a situation where I have a mortgage and want to move... very best of luck

Danii231292

Hi. Iv just signed up to a two year debt management plan. My question is if and when I can get a mortgage once this has done? My debts re only just over 3 grand but I was struggling and put a stop to it before I sink further. Will I ever be able to get a mortgage?

Thrugelmir

Danii231292 wrote: »

Hi. Iv just signed up to a two year debt management plan. My question is if and when I can get a mortgage once this has done? My debts re only just over 3 grand but I was struggling and put a stop to it before I sink further. Will I ever be able to get a mortgage?

Hi Newbie,

Start a new thread then you'll receive responses. Tacking onto old ones won't get you replies.

diska

Back to original OP, while your sums is right that getting a mortgage could save money compared to your current rent, mortgage providers aren't going to look at that in their decision process.

I don't think mortgage providers would also look fondly on your deposit being lent by a family member as effectively is another debt for you to pay off.

Thrugelmir

diska wrote: »

Back to original OP,

Original post was May 2011.

sillyrockabilly

opinions4u wrote: »

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.

I think your all being pretty harsh. The whole point of a DMP is to show your creditors that you are willing to do something about that debt you have. Juat because you are in a debt managment plan does not mean you cant get a mortgage it just means you may pay higher deposits or inrerest rates to get what you want. Dont give up theres always someone willing to roll over for more business. :rotfl: