Chance of getting a mortgage on DMP and CC Debt

angeljay

Been on here a few times, just wondering if anyone could help with a possibility myself and partner are looking at.


We currently live in a house co - owned between myself and my ex, its on standard bank rate and obviously will change whenever it goes up.


We want to move on with our life as been together 4 years and get a place to call our own, this is the approx. information:


Joint income £45K
My credit cards £12K
Partner Cards £500
DMP - £3000 Approx
Car Finance £3000 Approx


Been on DMP for over 3 years and still paying off


Had a look at Natwest just as an idea and can get around £115K mortgage in principal not gone further than this with a 5% deposit, we were considering selling the house we are in to clear off outstanding mortgage and hopefully finance deposit and look at getting mortgage for about 80K further out of the area where we live.


Basically what are our chance of getting a mortgage? We understand could be another 5 years till debts paid off and we would like to sort something before we are both 40 years old.

Would it be better to sell house pay off mortgage, rent and try our best to collect a deposit and pay debts over next 5 years or so?


or


Stick in house we are in which is in my ex's name for the time being?

We love the house, but some issues are arising and we know one day the mortgage payments will go up and was considering going on a fixed rate mortgage if we could get one.


Thanks for help.

nomoneytoday

If someone owed you £3 and wanted to borrow £115, what would you say?

amnblog

The DMP is killing your credit file and needs to be dealt with.


5% deposit is not a large enough deposit for applicants with a patchy credit history. You need to be thinking about 15%+.

angeljay

We would not get a 15% deposit from sale of property as originally took a NR together mortgage.



Would you suggest staying in property for the time being and paying off towards our debts or look at starting a fresh, selling house renting for the next few years to pay off debts that way we kind of have a place of our own?

Thrugelmir

angeljay wrote: »

or look at starting a fresh, selling house renting for the next few years to pay off debts that way we kind of have a place of our own?

Certainly speeds up the process. Will renting free up sufficient cash to make it worthwhile though. Is the mortgage repayment or interest only?

ACG

There is only 1 lender I can think of who would potentially do this.
I would suggest you find a good experienced broker in the adverse market and have a chat with them.

If I was a gambling man, I dont think I would put my money on getting this through. However, if you dont try then you will never know.

angeljay

Thrugelmir wrote: »

Certainly speeds up the process. Will renting free up sufficient cash to make it worthwhile though. Is the mortgage repayment or interest only?

The secured part of the mortgage is interest only, however we are looking at paying extra money towards this from January. NRAM said this would be the best option as they don't charge interest on other payments.

Renting would basically cost the same as our mortgage does, but the place would be outs (sort of)

Westminster

I would presume part of the agreement you made with your DMP provider was not to attempt to secure any further credit (it certainly was a condition of mine) so I would be looking at clearing the DMP before anything else.

angeljay

Westminster wrote: »

I would presume part of the agreement you made with your DMP provider was not to attempt to secure any further credit (it certainly was a condition of mine) so I would be looking at clearing the DMP before anything else.

I am not sure, my partner set this up. He has been running a credit rebuild credit card for about a year which basically he puts his petrol on and then pays it straight off but that is all.

nobodysdriving

the DMP 'must' be paid off asap

I was on one myself, I was fortunate that I could clear half of it, the other half I contacted the lenders and asked them to put me back onto the 'standard interest rate and repayments'.

I came off the DMP 7 years ago, this was fully off my credit history a while ago now.

coming off the DMP means that I now work 6days a week and have done so for past 6 years but it's worth it. I know I am lucky I can.

Now I have got my mortgage.

Thrugelmir

angeljay wrote: »

He has been running a credit rebuild credit card for about a year which basically he puts his petrol on and then pays it straight off but that is all.

Won't be worth tuppence as you are in a DMP.