Getting a mortgage while on a DMP

MikeJK

Hi.
I was wondering how hard is it to get a mortgage whilst on a DMP?
Its an argument i am having with my other half, i say you cant she says you can!
Basically my credit report is clear (entries were removed after 6 years) but i am paying £200 monthly for aprox 30k debt.
Would a lender just throw the application out when they see the direct debit?

Many thanks.

Dave_Ham

You are both right to a degree.

It is incredibly difficult to achieve, although not impossible. It depends on the complete situation.

What deposit do you have, what income/s are you on and what does OH credit file look like?

_Andy_

MikeJK wrote: »

Hi.
I was wondering how hard is it to get a mortgage whilst on a DMP?
Its an argument i am having with my other half, i say you cant she says you can!
Basically my credit report is clear (entries were removed after 6 years) but i am paying £200 monthly for aprox 30k debt.
Would a lender just throw the application out when they see the direct debit?

Many thanks.

How much deposit do you have saved up?

MikeJK

Thanks for the quick reply.
Between us we earn 60k although her income is variable. I am the 'main' wage earner.
Her credit report is clear.
The deposit will be around 15%, I guess house value will be £200k.

Thanks

MikeJK

My argument to her is that we should pay of the DMP instead

Dave_Ham

Speak to an experienced broker and I would expect this to be potentially achievable.

Selection on what is the best option is down to you and your Wife, but both should be a viable option.

MikeJK

Typical, like all marriage arguments neither of us is right!

Thanks for your help.

Leon_W

I think Dave is being a tad optimistic.

It would be impossible, with that level of debt, and with such a small deposit to be considered by any lender.

Settle the DMP first.

Wh05apk

I agree with Leon here, I would think 85% whilst on a DMP would be nigh on impossible, Dave if you can do it, you are a better man than me.

Just a thought though, what is showing on your credit report? are the accounts showing as being in arrears?

rosiesposies

would be interested in peoples views on this as well


I think i read it as if the dmp is still being paid but the debts no longer appear on credit file then how would that affect a mortgage application?

Simon_gloster

Borrowers are generally asked if they have 'arrangements' in place. If yes is selected it will either decline or be referred for further investigation by underwriters. If there is a DMP in place and you say no to arrangements as the debts have dropped off the file, well technically its obtaining a mortgage by providing incorrect information.