DMP and Mortgages

taylorj3

Hi there,

I've been told by my mortgage broker that in the current climate no lender will consider me because I have a DMP on my credit file, even though it is closed and repaid in full.

I've been told I will need to wait the 6 years until it comes off my file before I am considered by most lenders.

Its seems like a DMP is a death sentence for mortgages whereas those people with old CCJ's are treated better even though they had to be taken to court to get the creditors money back.

I thought I was doing the right thing getting a DMP to sort myself out but now I'm wondering if I should have just gone bankrupt as it seems to have less of a stigma attached to it.

On the positive side I'm now debt free and can hold my head up knowing that I've repaid everyone that I once owed. Unfortunately mortgage lenders don't take that into account though.....

Anyone got any experience with DMP's and lenders or know any lenders that are DMP friendly?

Let_Us_See

If might help if you could post specific details of your DMP? Thanks.

Dave_Ham

Key points will be dates defaulted and the value of the default.

You are probably close to these anyway; but your Experian, Equifax and Call Credit files will help.

taylorj3

Started in October 2010 with CCCS, around £28K originally to be paid back over 5 years but managed to pay it back sooner with the last payment made in March this year.

2 of my creditors applied defaults in 2010 the rest marked my credit file with the DMP.

The defaults were for £11K and £1.6K

Mostly credit card.

taylorj3

PS - I have a 40K deposit so am looking for a LTV mortgage of 80-85%

Let_Us_See

Mmmm. Not the easiest to place, but take your credit reports to a broker and let him (or her, sorry ladies) fight your corner.

taylorj3

I did that (to a specialist broker) and they said I would have to wait another 3 and a half years until the DMP is completely gone from my file.

Seems a bit harsh when lenders will consider you with CCJ's after 2 years.

I think my advice to anyone in my position 2 years ago thinking of getting a DMP is don't. Would have been better with CCJ's against me.

On the bright side if I stay where I am I will probably have a 100K deposit in 3 1/2 years time. No doubt lenders will be all over me then wanting my business

Dave_Ham

Just a bad broker as that is not fact, defaults and the fact you satisfied them will work in your favour mortgage wise.

So long as everything stacks up with your deposit, income and property purchasing; this should be achievable with 15% deposit at competitive rates..

Obviously you need to have decent track record of payments post DMP

taylorj3

I am hoping it was a bad broker.

Since I got my Sh%T together in 2010 I've not missed a single payment for anything.

I've also learned to become an expert budgeter now as well so the chance of me being late for any future payments is very slim.

I am speaking to a new broker this evening.....

Dave_Ham

Good stuff, key considerations.

Find out their terms of business and about fees. If and when they are charged and if they are unsuccessful does it cost you anything.

I would also establish that they are confident of achieving a solution and that their experience is such that this can be achieved, as it is a tricky case as you are aware.

Ensure they do not credit check you without justifying their advice on lender.

Good luck

Abu-Dina

taylorj3 wrote: »

I am hoping it was a bad broker.

Since I got my Sh%T together in 2010 I've not missed a single payment for anything.

I've also learned to become an expert budgeter now as well so the chance of me being late for any future payments is very slim.

I am speaking to a new broker this evening.....

I also spoke to a "specialist" broker and he told me that I had no chance of getting a mortgage. he told me to forget high street lenders for atleast 3 years!!! Guess what? He was wrong....

As the saying goes, if you don't ask you don't get.

Good luck!