Mortgages On A DMP

ticmike

Just wondered if anyone had any experiences with mortgages whilst on DMP?
Sadly a few weeks ago my gran passed away and i'm looking into buying her house from her.
I already have a mortgage with the bank of scotland (with good record, never missed a payment) but im looking to borrow a bit more to purchase my grans house.
I should make a decent profit from the sale of mine (15-25k depending on value) but the house i want needs modernizing so i'd need that money for that.

My main question is, does anyone have any experience on getting money on an existing mortgage whilst on a DMP??

poppasmurf_bewdley

ticmike wrote: »

My main question is, does anyone have any experience on getting money on an existing mortgage whilst on a DMP??

Err, no. But would you lend money to someone who was having trouble paying back money to others he'd already borrowed from?

ticmike

Two ways of looking at it.
Ive never ever given them any issues regards payments missed or anything, always been ontime and also a DMP does show that rather than go bankrupt or anything like that ive chosen to address the problem and pay lenders back, all be it later than expected rathen than them get nothing.

poppasmurf_bewdley

That's rather like saying: How can they complain about me being a bad customer - when they repossessed the car, there wasn't a mark on it!

ticmike

poppasmurf_bewdley wrote: »

That's rather like saying: How can they complain about me being a bad customer - when they repossessed the car, there wasn't a mark on it!

I disagree.

loveka

I agree that sometimes it can seem unfair, but a DMP really does mean that it is unlikely that you will be able to get a mortgage because there is too much bad stuff on your credit file. Lenders are very fussy these days- people are sometimes turned down because they have a default for 30 odd quid on their file.
Even remortgaging a current property can prove difficult. It really is a major downside of a DMP.

Does your partner earn enough to apply for a mortgage in their name assuming their credit file is clear? This is what we will have to do in 5 years when our current mortgage deal runs out.

Unfortunately banks don't look at individual circumstances and reasons for debt. If they see you as a bad risk then the answer is no. I sympathise because it is a major pain and has caused me many sleepless nights.

matttye

Unfair as it may seem I think you'll have issues getting a mortgage.

I say it's unfair because I know people who have got into trouble with unsecured debt but have never missed a utility bill or mortgage/rent payment, which are obviously higher priority.

Unsecured, low priority debts can fight over the scraps of what's left after the important expenses are paid

simeyb

When you entered into your DMP, your income and expenses statement shouldn't have left anything in the way of disposable income that would cover another mortgage?! If it did, and if I was one of your creditors, I would expect you either to increase your payments to me or to not be on a DMP in the first place.