Mortgage with paid off DMP

Toastandmarmite

Hi there,

I was hoping someone would be able to help. In 2008 I set up a DMP to pay off debt that I'd run up. I paid it off entirely, in 2010.

My partner and I are now about to start looking for a house and will need a mortgage. I wondered if anyone knew how my chances would be affected by haing had a DMP in the past.

Apologies if this is a stupid question, but I wasn't sure where else to ask.

Thanks in advance
TaM

ACG

When in 2010 was it paid off?

How much is the purchase price, how much deposit will you have?
How much are your incomes?

Do you have any other debts outstanding or any adverse?

Toastandmarmite

Hi there,

It was October 2010 (early if that has any relevance)

Purchase price is £350k
Deposit is £72k

No debts outstanding at all - I've been really really careful since.

Thank you for helping

Dave_Ham

In addition to above, did you get defaulted as part entering the DMP and what dates?

Worth getting your Experian, Equifax and Call Credit reports in advance.

All the best

Toastandmarmite

Hi there,

I don't know if I got defaulted - how would I find that out? Apologies if I sound stupid.

Toastandmarmite

Oh also (and I don't know if this has any bearing) We've had an agreement in principle.

My salary is £30 and my partners is £40

ACG

Who is your agreement in principle off?

Toastandmarmite

We've got 2 - HSBC and Countrywide

ACG

Countrywide? They wouldnt be offering you the mortgage, theyre the broker that gets the AIP from the lender.

HSBC i dont think you have a chance with. Theyre usually pretty strict.

ValHaller

If you have had an agreement in principle, who was it from? And did you declare your DMP to the lender? If you did, then you should be OK, but if you didn't, expect to be disappointed when you come to the full application.

Overall, I expect the professionals to say that this is looking marginally do-able at 80% LTV and 4* income - but that it would look better after October, when the DMP will be 3 years gone and you might have saved more to get you below 75% LTV

Do not go up and down the High Street applying everywhere. Too many applications on your record will probably be quite damaging in the context of your DMP.

Dave_Ham

You need to get your Experian, Equifax and Call Credit (as suggested) as these will give you definitive answers.

I echo the surprise at HSBC and Countrywide are jokers just giving a random Agreement In Principle without seeing credit files.