Mortgage, DMP, Defaults and satisfaction dates

tr1als_andy

Afternoon all, new member and first post here after many years of lurking whenever I need advise.

Firstly, apologies for the lengthy and vague thread title....

Background Story -

8 years ago at the grand age of 21 I bought my first house entirely in my own name with LTV of 95%. Shortly after my circumstances changed and compounded by my naive attitude and sense of pride I managed to rack up around 14k worth of debt shared between 5 creditors. I began my DMP 1st Jan 2009 after several defaults and bills mounting to more than my income.

This debt has now been fully paid with my final DMP payment December 2014.

Today my credit score looks a healthy 982.

Present time -

Now with a partner of several years who I'm due to be married to, we would like to sell my house and jointly buy a house 25 miles away more local to where we both work. I've had my house valued and I've got approximately £40k of equity. We're looking to buy a property in the region of £250 - 285k with my salary being £50k, hers £17k.

From the credit score, salary and deposit, on the face of it, it would appear we wouldn't have a problem however...

I've had a check of my report on Experian and following recent conversations with a mortgage advisor, although my accounts have been settled I still have defaults which have only very recently been satisfied.

This is a case for just 2 of my creditors.

For example -

Creditor 1 - Default issued December 2009 (12 months after DMP)
Last updated 12/2014
1-12 months - [8] [8] [8] [8] [8] [8] [8] [8] [8] [8]
25-60 months are mostly [8] with a spatter of green [?]'s

Creditor 2 - Default issued April 2009 (4 months after DMP)
Last updated 12/2014
1-12 months - [8] [8] [8] [8] [8] [8] [8] [8] [8] [8]
25-60 months are mostly [8] with a spatter of green [?]'s

This is vastly different from the other creditors who's history reads all [1]'s since the DMP agreement was put into place.

Since my DMP I've never underpaid or paid late on anything.

My question is, should the 2 creditors accounts show as defaulted right up until they have been satisfied?

I have phoned both creditors and the people on the phone believe the DMP agreement should have satisfied the default notice (as the other creditors appear to show).

I've now also disputed the date of the default which should in theory pre-date the start of the DMP (I got the DMP because of the defaults...)

The advisor has told me even if they do backdate the default past the 6 year rule, the lenders will go from the satisfied date being 12/2014.

If this really is the case I'm looking at a 40% deposit which is unachievable.

Thoughts, comments and advise welcome.

Thanks in advance, Andy.

amnblog

A DMP commits ABH on your credit file and the damage may be considerable.


You are not in the market for £250K+ purchase with £40K deposit.


You can ask another broker, but I suspect this one is right.

tr1als_andy

Thanks for the fast and frank response, it is appreciated.

Just to clarify your statement -

"You are not in the market for £250K+ purchase with £40K deposit."

I assume you refer this due to my credit file rather than my LTV of 40/250k (the way your statement could imply)

Regards,

Andy

amnblog

Yes, your credit file does not put you in the market for the lending levels you seek currently.

Dave_Ham

So on your credit file, what defaults exactly are still remaining?


Dates and value would be useful.


I don't usually disagree with other brokers on here (as they know their stuff too) but depending on the answer to my first question I think you may have be able to squeeze what you need.


This is subject to many unknown variables though which your broker is aware of and we are not.

tr1als_andy

Thanks Dave.

Creditor 1 -
Default Date: 14/04/2009
Default Balance: £2,064
Current Balance: Satisfied (12/2014)

Creditor 2 -
Default Date: 02/12/2009
Default Balance: £2,697
Current Balance: Satisfied (12/2014)

Oddly, looking at my file the other 2 creditors which have no issues (I know I previously stated there were 5 total - First direct was current account & CC account which were consolidated) have "Debt Management Programme" listed against them.

Regards,

Andy

Dave_Ham

It's difficult to interpret your file without seeing. I still fancy there could be a solution, although much depends upon the unknown variables.

Thrugelmir

tr1als_andy wrote: »

The advisor has told me even if they do backdate the default past the 6 year rule, the lenders will go from the satisfied date being 12/2014.

Correct. To default is one matter. The length of time to remedy the situation and bring an account up to date is another entirely. This places the onus on the borrower to do so as quickly as possible. As majority of lenders will require a lengthy period of good history before considering another application. Nor will lenders that you've defaulted on previously be receptive to your application.

tr1als_andy

Just to provide an update on this-

I disputed both default dates, as from memory only, they would have been much earlier than they show on file.

Creditor 2 with an original default date of 2/12/2009 came back and agreed that actual default date should have been mid December 2008 and updated my credit file. Low and behold my Feb Experian report no longer shows any existence of this account - or the satisfied date.

Creditor 1 believes the date is correct. Assuming this goes the same way as the above, it'll also "vanish"

All being said, we've had a mortgage in principle offered - with an up front credit check because of my previous history.

GMS

Which lender offered the DIP?

tr1als_andy

Very, very overdue update.

I'm now 6 months into living in my new home

Mortgage was provided by West Brom @ 3.99% fixed for 5 years.

The house we purchased was £272k with a loan of £238k.

Thought I'd put this up so those that are recently off a DMP can see it is possible, and there is hope.

Thanks, Andy.