New mortgage and DMP

scrivolenski

Hi,
Really need you help with this one.

I have quite a complicated financial situation and am not sure where to go with it.

I have recently moved with work but couldn't sell my house so rented it out and am renting a property in a new area. However due to various problems I have set up a DMP with debts of about £35k but my credit file doesn't reflect this yet.

We would now like to buy a house here and so replace our outgoings of rent and the loss we make on our house each month (rent is about £250 lower than mortgage repayment) with a mortgage. All in all we have about a 12.5% deposit (would have been more but we've lost about £20k on our house) for a new build but the financial advisor has said we would not get a mortgage. This is very frustrating as the restructuring I'm outlining above is affordable but at the end of the day we only have ourselves to blame.

Are there companies out there who would be able to help us or are we stuck between a rock and a hard place and destined to have to rent for the next few years?

Thanks in advance.

HappyMJ

You won't get a mortgage. You need to repay the debts first then save for a deposit and have no defaults, CCJ's , BR markers or whatever for at least 6 years. Some missed payments may affect the interest rate and some defaults (such as mobile contracts) may be ignored by the underwriter or not. But a DMP is quite bad and to still be in one and choosing not to repay debt when you have £12,500 in cash is madness.

scrivolenski

We do not have any available cash. The deposit is a combination of equity in the house we own, helpful parents and a 5% deposit paid arrangement