DMP paid off is a mortgage possible?

Djellusiv

Hi new to forum
Hopefully I've posted in the correct place,I have just finished paying my DMP with the cccs, and a property has come up in our village on the part by part rent scheme, we have a 20% deposit & looking to borrow 70.000,problem is we have been given as many as 9 defaults not done a credit search yet, but had around that amount of creditors
a couple of the creditors which were for fairly large amounts have sent a letter saying debt now fully satisfied & sent this to our credit report, we have had a mortgage in principle from Halifax but our mortgage advisor went to nationwide who declined due to defaults,
The advisor left half way through application & a new one has taken over, but hasn't much experience in part buy part rent or finding mortgages with this kind of problem, he is now suggesting we go to the Halifax who I bank with & have savings etc, I'm worrying that we need a specialist mortgage due to defaults, so looking for advice should I got to independent brocker who has a wider range of mortgages, or wait for Halifax to start application,or save time expecting them to turn us down and try another route,

Dave_Ham

Hi there,

It is hard to give decent opinion with some key facts missing..

Halifax are one of the more flexilbe lenders although to be honest surprised you made it through the credit score given your account of your finances.

You say we, so assuming you are buying with your partner. Were you both subject to the DMP?

Next steps and it sounds like you are onto this is to order your Experian and Equifax credit file. This will allow a new broker all of the key facts they will require to select a lender.

Next up, what type of part buy part rent scheme is it as this will make a huge difference?

Finally, how much of it will you own and is it shared ownership or shared equity?

That will do for a start - see what help we can provide.

Djellusiv

Ah yeah sorry looks like a few more details would be handy! It was both my partner & I on the scheme though alot of them would have been In my wife's name,I can still get some credit both contract phones in my name for past couple of years ,overdraft was £1500 on my account brought that down to zero outside of DMP and removed it recently myself also have savings in an isa with Halifax! We now have a clean sheet financially no debts or overdrafts only outgoings is rent & utility bills! The property is shared ownership & is for a 25% share total share is 87k we have 20% deposit.

Dave_Ham

Hard to say without full visibility of both credit files.

Halifax would be an astute choice if directly done, although chances are if they cannot place you may need to spend some time healing credit reports...

A lot of the more provincial lenders that can be a bit more flexible on credit history either don't entertain shared ownership or need it to be 50% + on the split side of things...

hope this helps a bit for you...

kingstreet

I suggest getting a copy of your credit file to see exactly what these defaults were for and when.

Halifax AIP pass is potentially meaningless in these circumstances. The soft footprint won't pick up the defaults, but you're likely to be declined immediately at full application on what you've told us so far. We had one case pass an AIP but was kicked at full application for a £25 default by Orange.

Djellusiv

Ok thanks for your reply I have made an appointment with my local Halifax branch, & will see how the full application goes! We came back an A on the mortgage in principle with a maximum of 152k as we need less than half that to get the ball rolling & 17.5k deposit fingers crossed they can help!

Djellusiv

kingstreet wrote: »

I suggest getting a copy of your credit file to see exactly what these defaults were for and when.

Halifax AIP pass is potentially meaningless in these circumstances. The soft footprint won't pick up the defaults, but you're likely to be declined immediately at full application on what you've told us so far. We had one case pass an AIP but was kicked at full application for a £25 default by Orange.

So if we do a credit search & there are defaults as many as I think there could be, all will be issued for the reduced payments made from the DMP, are we unlikely to be able to get a mortgage at all?
Because if we have to wait 6 years from now it will be to late to get on the ladder by then! Starting to wish I hadn't done the right thing & paid back 40k of debt & just done an IVA if we won't get a mortgage even though we paid it all back seems pointless in paying just had it written off!

Djellusiv

Before the DMP was paid which was is in its 6th year,
around 18 months ago I applied for a credit card through Vanquis as I believe if managed right can help improve your credit score, I received a card with £500 limit I have used it & paid off balances etc so they kept upping the amount,about 2 weeks ago I again cleared the balance & they have offered me £2500 & changed my account to their gold service, surely if my credit was really bad Halifax wouldnt of offered me a mortgage even in principle & Vanquis wouldn't have upped the amount availible let alone upgrading my account! Can still get an overdraft etc from Halifax, on the other hand all this is possibly irrelevant if we have defaults unless I don't have any in which case maybe I should try applying by myself the only one I'm sure of was the Nat west loan which they sent me a letter & said my credit file would show as fully satisfied! It's all really confusing my wife has 9 weeks untill her due date. If its not going to happen I would rather find out soon so we can concentrate on the new arrival, as this stuff has taken over

Thrugelmir

Djellusiv wrote: »

Because if we have to wait 6 years from now it will be to late to get on the ladder by then! Starting to wish I hadn't done the right thing & paid back 40k of debt & just done an IVA if we won't get a mortgage even though we paid it all back seems pointless in paying just had it written off!

Ask yourself why the same lenders that have written debt should now lend you money?

You've managed to save a sizable sum of money despite being on a DMP. Something which won't go unnoticed.

Dave_Ham

Unfortunately no-one can give you the definition that I understand you need.

To be honest, I think you may be ok. Kings is obviously right that the AIP softprint is no guarantee of success, but the other points you raise make me think you will be ok...

If for any reason it does decline, you may be able to get it to accepted with a slightly bigger deposit so do ask them...

Good luck

Djellusiv

Thanks Dave
Really just want to be able to tell my wife where we stand & try and put it all into perspective as things got a little tricky when our finacial advisor left & the change over hasnt gone to smoothly, so will try Halifax & hope lady luck is on our side & like you say I could look at other options