DMP and Mortgage

littlesprinkles

We now have a DMP with Stepchange. Is there any chance of getting a mortgage during a DMP or will it be years after we've finished our DMP?

glentoran99

If you are on a DMP then you cant afford your current debts, you aren't going to be able to borrow more, and I see you said on another thread you are having trouble meeting those payments

littlesprinkles

Ah yes of course Glen. Sorry, I'm quite young so quite naive, well, not very well educated in the area. I was thinking since we meet our rent payments which are well above mortgage that somehow it would be okay. They need to teach these things at school.

glentoran99

littlesprinkles wrote: »

Ah yes of course Glen. Sorry, I'm quite young so quite naive, well, not very well educated in the area. I was thinking since we meet our rent payments which are well above mortgage that somehow it would be okay. They need to teach these things at school.

I can understand your thinking, but unfortunately they wont look at it that way.


the other thing is how would you save for a deposit?

littlesprinkles

Oh I was just thinking in to the future when things are better off really. I think we would be able to get help from our families for a deposit. I think my main concern is how many years after clearing out debt would it take to get approved for a mortgage.

glentoran99

littlesprinkles wrote: »

Oh I was just thinking in to the future when things are better off really. I think we would be able to get help from our families for a deposit. I think my main concern is how many years after clearing out debt would it take to get approved for a mortgage.

Shouldn't be that long really, presumably your accounts are defaulted then your credit file would be clear 6 years from the date of default

Jeff_winter

Hi as above you will not be able to gain a new mortgage whilst on a DMP as your credit file will be shot to pieces.

I am currently 18 months into a DMP and managed to gain a mortgage this week, however I already had one, I was not able to borrow more, change the length of the mortgage, all I could do was fix at a lower rate for the next 3 years.

lynns3cookies

Hi all, any advice for me as I ponder what the future may hold? I'm on a new DMP and had my home repossessed 4 years ago. When the day finally arrives and my defaults leave my credit report does my repossession do the same thus allowing me to effectively wipe the slate and maybe again be trusted with a mortgage? I know I'm years away from it but it's always good to have dreams that could become a reality??

sourcrates

Defaults, county court judgements, repossessions etc etc etc, all disappear after 6 years weather satisfied or not.

DorisTrousers

lynns3cookies wrote: »

Hi all, any advice for me as I ponder what the future may hold? I'm on a new DMP and had my home repossessed 4 years ago. When the day finally arrives and my defaults leave my credit report does my repossession do the same thus allowing me to effectively wipe the slate and maybe again be trusted with a mortgage? I know I'm years away from it but it's always good to have dreams that could become a reality??

I note from your previous posts that you had a house repossessed and are on a DMP. Can I ask how much you are paying, and how long you reckon it will take to clear the debt? It may be that you could consider a Protected Trust Deed which might reduce considerably the amount of time you are paying the debt for. In reality, that won't be any worse on your credit file than what is already there.

Just a thought.

lynns3cookies

Around 6 years to pay off at £350 per month.