Any Options?

Ribbons473

We have been in a DMP with Payplan for the last 3 years due to some financial difficulties, we have never missed a mortgage payment but obviously now have defaults on our file.


We would like to sell our house as we have enough equity to clear our debt in full and still have around £70k deposit for a new house, looking to mortgage around £250k with an income of £65k.


The mortgage broker we used when purchasing this house has told us we have no chance and we would be best selling, clearing the debt and renting till defaults fall off but I have read conflicting advice so looking for a definitive answer!


Any advice would be very much appreciated.

ACG

Assuming you are clearing the DMP in full (not full and final settlement), and you have at least a 15% deposit - there could well be a lender at normal(ish) rates.

If you can put down 25% then it will help reduce the rate and potentially increase the chances of it getting through.

It might be worth speaking to a new broker (not one within an estate agents).

Ribbons473

Thank you, yes we would be clearing all debt in full, no offers, sorry to sound silly but where do I find a good broker, been googling but don't know where to start!

ACG

Any recommendations from friends/family?
Try and find a whole of market broker, it might just be a case of looking on google?

Ribbons473

Ok thanks, do we need to find someone who specialises in our circumstances?

ACG

Theoretically no, but some brokers tend to just want the nice and easy cases and shy away from the ones that need a bit of research, or say it "cant be done" rather than its not one for them.

Dave_Ham

As implied, your circumstances should have a sensible solution.

Word of caution on purchase price though as types of lenders you are likely to end up with will not lend high end income multiples...

Good luck

Ribbons473

Ok, thanks for your advice. much appreciated.


So maybe theres some hope !

Ribbons473

Dave Ham, thanks so maybe we need to lower our sights a bit, difficult where we are as would struggle to get a decent house in this part of Essex for less than £300k!!

Jason_Bourne_2

ACG wrote: »

Assuming you are clearing the DMP in full (not full and final settlement), and you have at least a 15% deposit - there could well be a lender at normal(ish) rates.

If you can put down 25% then it will help reduce the rate and potentially increase the chances of it getting through.

It might be worth speaking to a new broker (not one within an estate agents).

Will it make much of a difference if they are settled full& final (discounted, partial settled) compared with settled in full.

ACG

Jason_Bourne wrote: »

Will it make much of a difference if they are settled full& final (discounted, partial settled) compared with settled in full.

It depends. If you are clearing the DMP with the sale of the house then i think it would need to be in full. If you have already cleared it in the past then full and final should be fine.