Will a DMP prevent me getting a Mortgage?

sampas

Hi

I am looking at getting my debts in order with a Debt Management Plan. As is to be expected one of the conditions is that I will be unable to take out any more credit. This is fine, but does this also include Mortgages?

I am currently living with parents and would like to move out later this year to live with my partner. If we have to rent then that's fine, but it would be nice to know what my options are.

So, will I be turned down for a Mortgage while my DMP is still active and will it have any impact on the Mortgages I would be offered once it is finished?

Thanks for any help.

Mr_helpful

Well a mortgage is credit so your DMP should stop you whether a mortgage co would stop you is another matter but I get the idea you would be after 100% so that would be unlikely too. Sorry but I would stay at home its cheapest and you can sort your debts out

sampas

Cheers for the reply.

Unfortunately for several reasons I've got to find somewhere to live. People have told me many times that renting somewhere is a waste of money, but it's better than living on the streets and I'm happy to make do.

Will getting a Mortgage after the end of the DMP be a problem? Am I likely to have to pay a higher rate of interest?

JoeK_3

sampas wrote: »

Cheers for the reply.

Unfortunately for several reasons I've got to find somewhere to live. People have told me many times that renting somewhere is a waste of money, but it's better than living on the streets and I'm happy to make do.

Will getting a Mortgage after the end of the DMP be a problem? Am I likely to have to pay a higher rate of interest?

Definately. Your DMP only gives you time to recover from your current situation and you will have a bad credit record as a result. You should expect to pay a higher rate for a number of years.

Get yourself a good whole of market mortgage adviser to guide you through the adverse credit maze.

JoeK