How to improve score after finishing DMP?

novadash5

Hi,

New the forum and hoping for some advice as I don't know where to turn. I finished a DMP about 6 months ago and I'm completely debt free. I'm really struggling to get advice on what happens now...

Last year I was fortunate enough to receive quite a significant salary increase with a new job which mean't I could pay the DMP off slightly early. I've been able to also get a deposit together for a house and I'm in a good position to buy a house now. I'm 99.99% certain I won't be eligible for a mortgage because of my past and have no idea what to do now??

Does anyone have advice on what to do in my situation? I'm very concerned because my girlfriend has a very secure income and even though I take home more than her, her credit file seems perfect so it's my history thats holding us back.

Any advice is appreciated, I feel very lost!

Thrugelmir

One option to consider is to save using the Nationwide's Save to Buy scheme. This will earn you brownie points over time which will negate the impact of your DMP. Don't expect any quick solutions though. As you've got to prove your credibility as a borrower by demonstrating a change of attitude towards personal money management.

Tixy

A dmp won't permanently affect your ability to get a mortgage. How soon are you hoping to buy? What shows on your credit file currently? How recent dates are any defaults etc.

novadash5

Thanks for the replies.

We'd like to buy in the next 12 months but after reading your posts it's looking more and more disappointing. I just checked my Noddle account and it shows as all settled or satisfied, no credit for the last 7 months since completing the DMP at all. Originally I had 5 creditors, 1 shows as up to date whilst on the plan, 1 shows as on a plan but the other 3 shows as defaulted for the full duration of the DMP, I'm sure this is correct as it's up to the lender if they want to show as defaulted on on a plan even though I never missed a single payment whilst on the DMP and they all agreed to the DMP?

The crazy thing is when I had debt and was on the plan my score was higher than when I became debt free!

Tixy

The defaults are normal on a dmp. How old are the default dates? The accounts drop off your file 6yrs after the default date.

novadash5

Well the last default date was the last month of the DMP which was may last year.

Does than mean I'll have to wait 6 years before I can apply?

Tixy

novadash5 wrote: »

Well the last default date was the last month of the DMP which was may last year.

Does than mean I'll have to wait 6 years before I can apply?

There is only 1 default per account, which will be shown in a field called default date or similar, it is this that is the relevant date not the monthly status updates.

It is possible to get a mortgage with satisfied defaults still on file, but harder and usually more costly.

novadash5

I can't see that on Noddle, I can just the monthly status updates. I originally defaulted in May 2009 which is when I sent up the DMP.

Do you recommend a different credit report checker to see more info?

Thanks for your help by the way!

Thrugelmir

novadash5 wrote: »

We'd like to buy in the next 12 months but after reading your posts it's looking more and more disappointing.

A DMP is a serious matter from a mortgage lenders perspective. General guidelines would suggest a minimum of 3 years of good history.

20aday

novadash5 wrote: »

I can't see that on Noddle, I can just the monthly status updates. I originally defaulted in May 2009 which is when I sent up the DMP.

Do you recommend a different credit report checker to see more info?

Thanks for your help by the way!

You can obtain your £2 statutory reports from both Experian and Equifax to see what's been reported on there.

novadash5

@Thrugelmir Would that mean at least 3 years from when it was paid off?