Mortgage chances after DMP?

missnb

Hi everyone. Bare with me as I am new to this, and new to my DMP.

I have read these forums a lot before joining, and have seen lots of different answers to this question:

What are my chances of getting a mortgage after repaying my DMP?

I am only on my 3rd month of paying the DMP. StepChange estimate I will be debt free in 18-24 months :T. But I am confused about certain things...

Do I automatically receive defaults from all the lenders now I am on a DMP? as I know this will affect my CR for 6 years...
And if this is not the case, how likely am I to get a mortgage within a couple of years of my DFD?
Furthermore but slightly unrelated, I haven't had any acknowledgement from one lender of the DMP...even though I have paid two months to them now, I am still receiving statements and demands...although not an official Default notice as of yet.

Sorry again if I have posted on the wrong area of the forum, I'm new!

HappyMJ

The defaults are at the beginning of the DMP. After 2 years of payments the defaults will be 2 years old...then after another 2 years of saving towards a deposit they'll be 4 years old. The chances are greatly increased the older they become. After the DMP is finished keep using credit such as credit cards but use them responsibly by paying them off in full each month. The more current green marks they see will help offset some of the old red markers such as arrears and defaults.

Dave_Ham

In addition to above, valuable advice you need to demonstrate good banking behaviour.

It is likely you will default on your accounts and subsequently likely that you will struggle to get high street mortgage finance for 6 years from the default dates.

Time is a healer and potentially 3-4 years from now a mortgage will be achievable, subject to the mortgage conditions then.

Once completed the DMP, the magic figure is currently 15% to achieve a mortgage with good current account conduct.

All the best, worth looking through the Debt Free Wannabe section as there will be a host of really good information and support on there too...

Hopelessly_Hopeful

Hi

You don't automatically get defaults at all on a DMP. They can put them on any time including upto the end of the DMP. Stay on your record for 6 years from going on so if your DFD is upto 24 months away the worst case scenario is 8 years to be clear. You can get rates under 5% when defaults are a couple of years old if you have upwards of 15% deposit.

I have DMP and defaults, one less than 2 years old but NRAM have still agreed to port my mortgage. If I want to borrow more I need to go through a specialist broker but can be done.

Hope that helps.

HHx

missnb

Thanks for your replies - I'm glad to hear a mortgage is not unachievable afterwards - although I gather I may have to pay higher interest? etc.

The mortgage is my main worry and it is also my OHs main worry. I think he thinks because of my debts, our original 'big life plan' is defunct.