Getting a mortgage after DMP

Sun4

A helpful member has suggested I post here as well as on the Debt Free forum. I'm hoping someone can give me some advice. We have inherited some money - enough to clear our debts and end our DMP. We now need to move house to be nearer to my husband's job and will hopefully have around £60-£70k equity when we sell up plus some money from the inheritance (after clearing Debts). How easy will it be to get another mortgage? We will need a £50k mortgage or thereabouts. We both work full time and have never missed a mortgage or DMP payment. How likely are we to be able to get a new mortgage? We have three defaults from three years ago. Thanks in advance.

ACG

Speak to a broker.

Its looking like you will have a 50% plus deposit?

There will be a lender for it, but the interest rate wont be pretty - 6-9% would be a ball park, although there is potentially a lender who would do it under 4%, but I would do your figures based on worse case scenario.

Sun4

Thank you ACG. We are hoping to have £100k deposit on a £150k house and take the loan for 15 years. We were initially told that we would have to wait 3 years until the defaults were off our credit file but would def consider higher interest rate in order to get a mortgage. Thanks again.

southernbelle

I am also looking for a mortgage after a DMP, although only with a 10% deposit so probably not possible

Thrugelmir

southernbelle wrote: »

I am also looking for a mortgage after a DMP, although only with a 10% deposit so probably not possible

An incentive to settle the DMP as quickly as possible. Many people view a DMP as an interest free loan. Preferring to save rather than clear the DMP. So having to wait for some years comes as a shock as they thought they were being clever. Too clever in fact. As ACG says options are available but at a price.

Swami_Trinel

southernbelle wrote: »

I am also looking for a mortgage after a DMP, although only with a 10% deposit so probably not possible

I'm a few years behind you. My DMP ended 12 months ago and I've started saving for a deposit which I expect will take about four years by which time I'm hoping my credit rating will look a tad more attractive.

ACG

When did you enter the DMP?
I have recently found a lender who would look at this with a 10% deposit in certain circumstances. the rest of the case would need to be pretty good and there are certain restrictions on the type of property etc but it could be possible to do.

Rowb

Advice pls!
I started a DMP in feb 2010 and paid everything off fully jan 2014.
We're now looking to move house and get a mortgage, any advice regarding how it works after a dmp?
We're looking at a £170,000 house with a £17,000 (10% deposit)
Thanks

Thrugelmir

Rowb wrote: »

We're now looking to move house and get a mortgage, any advice regarding how it works after a dmp?

Quick answer time heals.

Best to start your own thread. Very confusing when you tag onto something old.

ACG

Rowb - I would find a broker.
chances of placing this on the high street are very slim - although not impossible. Worse case scenario would be a rate of around 6%.