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

sillyrockabilly

Your all being pretty harsh. The whole point of a dmp is to show you are willing to do something about the debt that you have. I completely agree theres not a lot of help and advice here just blame. Everyone struggles at some point...just because you have a dmp does not mean you cant get a mortgage you may have to pay a bigger deposit or higher rates but there is always someone willing to roll over if it gives them business. Hope this helps

Thrugelmir

sillyrockabilly wrote: »

Dont give up theres always someone willing to roll over for more business. :rotfl:

I doubt borrowers would want to pay the rates of interest on offer though. :eek:

Thrugelmir

sillyrockabilly wrote: »

I completely agree theres not a lot of help and advice here just blame.

I agree. Those in financial trouble tend to blame everyone else for their misfortune except themselves. I am willing to help anyone that seriously wishes to help themselves. Though in no way suggesting that the road won't tough to travel. The reward is worth having .

kingstreet

sillyrockabilly wrote: »

Your all being pretty harsh. The whole point of a dmp is to show you are willing to do something about the debt that you have. I completely agree theres not a lot of help and advice here just blame. Everyone struggles at some point...just because you have a dmp does not mean you cant get a mortgage you may have to pay a bigger deposit or higher rates but there is always someone willing to roll over if it gives them business. Hope this helps

Could you let us know the lenders/rates/maximum loans to value for these lenders, as it would be very helpful to know who to approach?

Do they have any issues with the multiple defaults which are likely to be visible, or are these not a problem when you mention the DMP?

sillyrockabilly

Halifax bank will bypass the fact you have a dmp and defaults if you can get a 50% deposit together. Alot of money i know but there are so many other roads you may not know about such as buying for a relative meaning a family member can act as a guarantor on your mortgage if you can get a 25% deposit like i said before a dmp is not bankruptcy and there is usually a way around it. Dont let people get your hopes down just takes time and research.

sillyrockabilly

Also if you are still in your dmp contact them and ask if they have mortgage advisors they deal with directly you will be suprised.

gemmacantan1

It's me again and still haven't moved house! Tried to get a mortgage in 2012 but they wanted a £40k deposit and we only had £25 to £30k so still saving.

Have you thought about approaching your bank? If you have a good relationship with them they may be able to help even if the rate or deposit is higher. RBS are very considerate of that.

Halifax will look at you if defaults are more than 4 years old and you've shown that you've paid everything on time! But they will want a big deposit!

We're saving towards ours now and have to rent next year as have to move due to work commitments but unfortunately there is no quick fix to your financial situation.

Look into a mortgage broker. I approached one who was really helpful and said that while some lenders will turn a blind eye things hinder your chances.

1. Borrowing lowered
2. Higher interest rate
3. Higher lending fees and were talking £3k+ in some circumstances
4. Higher deposits

I know you want to move and secure your future and believe me so do I! But having recently realised that the property market isn't what it was, maybe you should stick it our until your defaults are removed and then look!

Louisejackson87

I think a lot of the responses here are quite harsh! Unless you have got into trouble with money and gotten in to debt yourself, you have NO idea how stressful, and difficult it can be to get out of it.

These debt management plans allow you a little breathingn space whilst still enabling you to pay off what you owe (and rightly so) but they never make it clear that you will receive defaults and effect your credit rating for 6 years, minimum! However, for some people, including myself, it can be the only way out and the only light at the end of the tunnel!

My ADVICE, (not judgment or critiscm) would be to start saving a little each month, whilst clearing a debt as you can. My debts are many but all small amounts so each month I pay one off direct with the creditor, and save an equal amount. That way, each month the rest of my creditors get a little more, and I am starting saving for that all important house deposit. The debt advisors advised me to do this, as if you pay more money into your plan one month when you have some extra money, they will unfortunately expect it every month.

This will start to have a snowball effect and you will soon be debt free. I had 18 debts, totalling about £15k and now 12 months later I owe less that £6k. All it takes is will power, no spending on anything if u can, and work as hard as you can to get as high an income as possible, take second jobs etc and you will get there in the end.

I know that I may struggle to get a mortgage in the future and that is why I am trying and will keep trying to get the biggest deposit I can, so that I will only need a small mortgage.

Good luck! Xx