Mortgage with a Debt management plan

Adam_f

Good Morning,

I am Looking at getting a mortgage, but I am in a debt management plan, and to be frank, my credit history is shot. looking at a £130,000 - £140,000 house. we have around £15,000 savings in the bank. we have a joint income of around just over £30,000. Does anyone have any tips or any help they can provide us with please.

Thank you very much for your time.

stephenni1971

How have you got £15,000 savings if you are in a Debt Management Plan. Would it notmake more sense to clear your debts and then save towards deposit?

Adam_f

The Savings are not mine, they are my partners. She has displayed interest in helping to pay it off. But she has worked hard for them. I refuse to let her spend her money on my mistakes. If it came down to that. I would look at the at the options, but I'd rather explore every other option first.

Leon_W

Sorry to be blunt Adam but a mortgage will be quite a long way off for you. You'll need to clear the DMP as first priority.

ACG

When did you enter the DMP?

Adam_f

Hi Guys, thank you very much for the replies. I should clear it within the middle of the year all being well. Will it change my chances being out of it? Obviously Being out of it is great, but my credit rating is still pretty terrible. I am very new to the mortgage game. So apologies over the simple questions. Once being out of the debt management, will that (even with poor credit rating) Make me a bit more eligible for a mortgage? I also entered it around December 2011

ACG

You may find one or 2 options. I think you may need a 15% deposit but theres a slight chance something could be done.

I would try and find a broker with experience in adverse credit as I think a lot of brokers would dismiss this outright.

Adam_f

Hi ACG, So what would a broker do for me if I guess I went that route? Thank you very much for your help by the way. it really is helping me

ACG

(I dont mean this the way it may read but...) They would give you a fighting chance. Being realistic there are probably less than a handful of lenders who would consider this, I dont think any of them are high street lenders, so the chances of you going to the right lender is very slim.

Of the 2 im thinking of 1 of them does not even deal directly with the public.

Adam_f

Right OK. Thank you very much for your helpful tips. Do you know if I paid off my debt plan. And was essentially debt free. would that put me in much better stance?

ACG

Without seeing your report its difficult to say but I would imagine in the short term probably not. In 2-3 years it would probably have more of a positive impact.

I would suggest getting your reports and speaking to a broker.