Effect of old DMP on mortgage application

RicRichRichie

Hi,

I'm looking to apply for a mortgage with my wife early next year. By that time I will be clear of defaults which were accrued in the last throes of my previous marriage. The last default will be removed in September this year.

My first query is: The defaults were created when I established a DMP with the CCCS and although the defaults will all be cleared under the 6 year 'rule' I have 2 accounts which were paid under the DMP at reduced payment rate, they were not defaulted and were closed in 2008 and 2007. One a credit card and the other a mail order account. They both show DM in the account status history. Will this have much affect on the mortgage application?

I intend to use a broker and of course fully declare my history including the defaults and DMP.

Secondly I have an AMEX credit card which I use for fuel and most purchases and it is paid off in full each month. Is it wise to use it at all from now until my mortgage application as I wouldn't want a lender to think that I rely on it. (only used to take advantage of the points scheme). I ask because I recently obtained my credit file and it shows the balances and payments and although it is always paid off in full it looks a bit 'messy'.

Note:
entered into DMP in 2005, sold house in 2007 and paid off many debts at reduced rate, completed DMP in 2009. No mortgage default or arrears.
Now remarried. Almost 9K saved towards deposit so far. Looking to maybe buy house we currently rent £180k to £190k with 10% deposit.
I earn 32k plus 9.5k forces pension
OH earns 20k

Many thanks.

Thrugelmir

If you completed the DMP in 2009. It will remain on your credit file until 2015.

Aim for a higher deposit than 10%. As many mainstream lenders will view your application with extreme caution.