Any chance of gettign a mortgage after settling a DMP early?

rob4620

Hi,

Long time reader of the forums making a rare post but I'd like some help/advice before I head out into the jungle that is mortgage lenders and banks all in a feeding frenzy over commissions etc.

Bare with me here it's a bit complicated.

I have been in a DMP since 2010 and recently decided to change to an IVA to try and get a finish line to my debts, my first application for an IVA was rejected by my creditors due to an error by the agent acting on my behalf which meant it was submitted late. This has now been addressed and they are drawing up another proposal for an IVA which I'm assured will be accepted.

However...my partner and I found out yesterday we are coming into some money which is obviously great news and we want to use it as wisely as possible.

My main aim is to be able to buy my own house as I have 2 young children and I'm tired of having to move my family around rental properties and also to leave them some bricks and mortar in the future.

Here is/are my questions.

• I have approx. 70% of my total debt coming to me as a lump sum, is this enough to do deals with my creditors to settle all debts in full?
• Has my failed IVA application damaged my credit history to a point where I can never hope to get a mortgage?
• If I get all CCJ's removed and all debts settled how long if I am paying my rent, mobile phone bill on time until I could potentially get a mortgage(if at all)?

As you can see it's a pretty complicated scenario (but a great one as being debt free is an amazing prospect!)

Any replies/advice are much appreciated.

Thanks!

pauletruth

the standard 6 years. try and get a reduced amount 50-60 % of the debt. cant see you getting a mortgage in the near future. with ccjs, defaults,dmp and an attempted iva. would you lend to yourself.

antrobus

rob4620 wrote: »

....Here is/are my questions.

• I have approx. 70% of my total debt coming to me as a lump sum, is this enough to do deals with my creditors to settle all debts in full?

I believe that the money that you are about to receive (a bequest?) will be captured by the company handling your IVA and used for the benefit of your creditors. I don't think you have the option of using it to 'do deals'.

_Andy_

With the IVA etc you can pretty much forget about any mortgage for a few years unless you have a significantly large deposit. And even then no high street options.

fermi

rob4620 wrote: »

I have been in a DMP since 2010 and recently decided to change to an IVA to try and get a finish line to my debts, my first application for an IVA was rejected by my creditors due to an error by the agent acting on my behalf which meant it was submitted late. This has now been addressed and they are drawing up another proposal for an IVA which I'm assured will be accepted.

So you don't currently have an IVA formally in place? Just a pending proposal?

rob4620

fermi wrote: »

So you don't currently have an IVA formally in place? Just a pending proposal?

Yes just a pending proposal after one failed application.

Thrugelmir

Little chance of a mortgage with a mainstream lender in the foreseeable future. As an example Woolwich will currently decline an application on the basis of a single default in the past 3 years.