DMP and my mortgage

TLJ_2

I have a mortgage with Santander 75% LTV on my house bought in 2009. About 3 years ago I entered into a DMP with Harrington Brooks on the advice of a friend (I regret this now as I'm pretty sure I could have just sorted it all out myself but it seemed a good idea at the time). So as it stands my credit file probably looks a bit worse for wear however my mortgage has always been paid regardless.

Anyway I am thinking about selling my house and buying somewhere smaller and of a lesser value and free up a bit of equity. I'm not sure where I stand with Santander and now having a DMP, I haven't contacted them as yet but would like some advice as to what my options are if anybody knows? Will they let me move house? I know as a mainstream lender their regs are probably quite tight.

Any advice as to what my options are would be greatly appreciated :-)

kingstreet

Your options are severely limited and Santander and other high street lenders are not going to want to lend to you in a DMP.

TLJ_2

Thanks for your reply. So what happens then? Will I be forced to sell and rent or stay put?

kingstreet

You sell your current property, repay the mortgage and any residue belongs to you.

You then rent until your DMP is finished and your credit history recovers, then you re-enter the housing market.

As an alternative, you could consider an adverse credit specialist, if any will consider you. A good whole market broker will go over your options, having established a lot more about you than we can on here.

Unless you desperately have to move, I'd stay where you are.

TLJ_2

Thank you Kingstreet. That is kind of what i feared but I'm not surprised. I am going to look into getting through this DMP quicker if i can, have posted elsewhere for advice on this. Thanks again.

TLJ_2

Just out of interest, how long out of a DMP would i need to be before lenders like Santander will help me again?

ACG

Ideally the DMP would be cleared with the equity and you would still be putting down 25% deposit but there is potentially a lender who would look at this even with the DMP remaining. A lot will depend on how your credit report looks.

TLJ_2

Well i haven't taken out so much as a mobile phone contract in the last 3 years so the latest default should be about 3 years ago. I should have a look into my report soon but thats my knowledge off the top of my head.

ACG

You may find your being defaulted month after month. Get all 3 credit reports and take a look.

Credit reports are funny, you could be being defaulted month after month on 1 but it is not being displayed on another this is why its worth getting all 3.

TLJ_2

Krikey, every month! Yikes.

ACG

They dont tell you that when your talking about taking one out do they.

You would have been better negotiating with the providers yourself but woulda/should/coulda - its not worth worrying about is it, whats done is done and its a case of trying to move forward as best you can.

Once you get copies let us know what they look like - experian, equifax and call credit (although this can be obtained for free from noddle.co.uk - not noodle) are the 3 agencies.