Mortage application after DMP

mcmank86

Hi,

I'm new here to this site, but just wanted to ask for some advice!

My fianc! and I are looking to have around 40k (20% deposit) by the end of the year. I have a good salary and a excellent credit rating. My partner had some outstanding credit card debt with Vanquis. We thought at the time, as the interest was so high was to go into a DMP (but wasn't really aware how bad they effect you credit rating). He only had 2k debt and the DMP started in May 2014- this will be paid off by December 2015. When we last checked his credit file on Equifax (since the DMP) it said his credit rating was fair.

Does anyone know what the chances are of us getting a mortage? Or any advice would be greatly appreciated!

Thrugelmir

mcmank86 wrote: »

Does anyone know what the chances are of us getting a mortage? Or any advice would be greatly appreciated!

Slim. A very foolish decision. Suggest you pay off the debt as soon as possible. Rather than cause further damage.

xHannahx

How have vanquis reported to your credit report. In mine they accepted the DMP amount, froze interest but have continued reporting as Up to date, which I don't think is on its own impacting.

mcmank86

Thank you for your responses!

Yes, the vanquis is showing up on the report as up to date. Although the credit limit has dropped from 3k to around 2.5k since the DMP.

Just wondered what time frame we could be looking at? ESP if paid the debt fully off now.

mcmank86

Sorry, feeling so sick with worry over it all.

downhillfast

Check all three CRAs as soon as possible and if none of them have put any 'arrangement to pay' or 'default' markers on (ie everything is 'up to date' and green) get it paid IN FULL ASAP (don't be tempted by a partial payment unless you have in writing that they will mark the credit file as 'settled in full'). You may just dodge this bullet if you are quick but as soon as that credit file is marked it is on there for 6 years!

mcmank86

Thank you- sorry to ask such stupid questions. Best dies he pay directly to vanquis or say to the DMP he can pay in full?

mcmank86

Best he pays* sorry lol

Thrugelmir

mcmank86 wrote: »

Thank you for your responses!

Yes, the vanquis is showing up on the report as up to date. Although the credit limit has dropped from 3k to around 2.5k since the DMP.

Just wondered what time frame we could be looking at? ESP if paid the debt fully off now.

Is this a DMP or an arrangement to pay. ARP's are normally flagged so that other lenders are aware.