Help how to get mortage in future if on Debt Mangement Plan

HappySad

My partner is on a debt management plan which frozen interest on £17k. His credit score is poor; but he has recently added his name to electoral role. He works in same job for many years. His debt was due to failed business.

My credit score is perfect; but I don't work as a stay at home mum to young children with one disabled. I am looking to earn a few hundred a month self employed.

We are hoping to move to an area that has a school that would be perfect for both my able and disabled son.

We would like to get a mortgage in a year and a half. Is there something my partner can to to allow him to get a mortgage? how can we improve his credit score? Are their lenders who will lendo people on debt managent schemes? . What about getting a credit card to build his credit rating. All advice welcome.

Miss_Marple_2

Hello - I'm no expert, but I am going through mortagage application at the moment, with an adverse credit history - if only I knew that what I know now !

Firstly, I don't think you can apply for new credit whilst in a DMP, so the credit cardis out until the plan is completed.

Secondly, I don't think mortgage lenders will lend to you unless the DMP is ended.

A lot also depends on how much deposit you have.

Have you posted on the mortgage board - there are some brokers who post on their with good advice. You are right to be thinking about this now - I wish I had thought about it earlier.

Tixy

Hi

How long is his DMP predicted to last at the moment?

How long has he been in the DMP and has he looked at copies of his credit files to see what is recorded on them/what default dates etc are recorded.

Whilst on his DMP it is against the terms of the DMP to take on new credit.

Assuming you are not homeowners at the moment then a mortgage isn't going to be a realistic possibility until the debts from the DMP have been paid off. And presumably he/you will then need to save up a deposit towards a house purchase before you will be in a position to buy.

Once the DMP is paid off then he can start building up a positive credit history with a credit card or similar. How long after the DMP until he may be able to get a mortgage would depend on what shows on his credit file.

HappySad

I own a property almost paid off. So we can get a large deposit say 3/4 of new house price. If we pay off his dmp would his credit score be ok in a year and a half?

Tixy

Depends what shows on his credit file now and what will show on his file in a year and a half.

He needs to know what shows for each account currently, whether it shows as defaulted (and if so what date), arrangement to pay, or late payments, or whether it did show as defaulted but these have already dropped off his credit file.

toothfairybuttkicker

Do not pay off his debt with the money from your house sale!!!!!!!!

I have no idea if he is the father of your children or not but please don't do it.

He got himself into financial difficulty and if you 'bail' him out he will not have learned his lesson, or worse disappear debt free!!!!

I'm not trying to be mean just honest, and no it has not happened to me but I do know a man that's done it to someone that he was madly in love with (didn't like her but she didn't deserve it either)

nicp60

HappySad wrote: »

I own a property almost paid off. So we can get a large deposit say 3/4 of new house price. If we pay off his dmp would his credit score be ok in a year and a half?

Probably not.

Tixy is absolutely right - it completely depends on what is on his credit file.

It is likely that his creditors have defaulted him on his credit report and these will remain for 6 years from the default date.

Get his 3 reports and check what info is on there.