debt management mortgage?

jacko43832

Hi all,
This is my first post on this site and really a cry for help.
Im currently in the armed forces and im facing redundency. Im currently living in a military quarter with my family. Im also on a debt management plan with gregory pennington and i think im going to struggle getting a mortgage if the poop hits the fan. The issue is that i cannot afford to pay the debt managment plan off until i get my redundency money and i cannot be proactive and apply for a mortgage until the debts paid off. Im worried because ive also heard that the stigma of debt mangement can stay on your credit rating for over 6 years even after its been paid off. Ive worked really hard to pay my debt off and ive already paid off over £20,000 worth of debt with around £8000 left to pay. Ive had a mortgage before and i had a really good history with it but i sold the property so my wife could live with me where i was based. Any advice is totally welcome as i am an institutionalized wreck and full of worry, cheers:(

ILW

Think renting for the next few years.

ACG

Ive managed to find a mortgage for one of my clients who got into debt problems. They made arrangements with their creditors themselves and that made a massive difference when speaking to lenders - but even then i had to go to small lenders who took a view on the situation as a whole.

Do you have an idea as to how much deposit you will have? I dont think 10-15% will cut it. I would say probably more like 25% plus as a minimum.

If 25% is a possibility, i would suggest you get your credit reports (Equifax, Experian, Call credit) and speaking to a Mortgage Advisor. If 25% isnt a possible, then i think you will really struggle.

Dave_the_Ginger_Cat

Another factor to take into account is your future role after leaving the forces. All lenders will want to see this, and may want you out of any probationary period which a new employer might have. Renting for a short period until all this is settled might be helpful

Angry_Bear

jacko43832 wrote: »

Im also on a debt management plan with gregory pennington and i think im going to struggle getting a mortgage if the poop hits the fan.

I'd urge you to abandon Gregory Pennington and go with one fo the free providers (StepChange or PayPla). that way the fee you're paying GP will be getting paid off your debt.

Im worried because ive also heard that the stigma of debt mangement can stay on your credit rating for over 6 years even after its been paid off.

Your credit file should be clear 6 years after starting your DMP (give or take a couple of months) not finishing it, and certainly not any longer than that.

Get a free trial for your credit report or join Noddle and check the current status. All defaults will drop off 6 years after the date of default and your creditor must default you within a reasonable timescale (rather than just saying late forever, or for years) - a "reasonable timescale" is usually considered to be about 6 months.

If you look at your credit report and things don't add up, ask in the Debt Free Wannabee forum for help and people will give you advise on how to get it fixed.