mortgage declined 😭

Thrugelmir

*feisty*fairy* wrote: »

We had no other option, we were paying more out than had coming in to cover interest. We have never ever missed any payments.

In no way being judgemental nor wishing to sound harsh. The truth of the matter was that you spent money you didn't have. You failed to repay it. This doesn't mean that you can no now going on a spending spree to fund a bigger house. Just because you are making regular payments under the DMP. If anything it sounds as if you could afford to repay more off your old debts.

The concern for any lender is that you haven't learnt from your mistakes of the past. More than likely you will end up over extending yourselves again financially. In this new era of responsible and affordable lending. You'll find it difficult to find lenders interested in advancing further money. Until you've demonstrated an ability to manage your own personal financial affairs responsibly.

Malmo

Take a step back. Here is what you must do in a methodical and measured way as others have already suggested.

(1) Obtain copies of your & your partner's statutory credit reports from all 3 Credit Reference Agencies. You need all 3 reports to obtain a full picture of your profiles as different lenders report to different agencies, so the report data tend to be different. Reviewing all 3 reports enables you to spot any errors and have them corrected, or spot any adverse issues such as defaults, CCJs, missed payments, arrears etc that you may not be aware of. Doing this exercise will ensure that the data that lenders use to credit check you is up-to-date, correct & complete.

See links below to each agency's statutory report.

Experian Statutory Report

Equifax Statutory Report

Callcredit Statutory Report AKA Noddle

(2) Start engaging with a decent, knowledgeable whole-of-market mortgage broker. Try starting a local broker search at unbiased.co.uk.

On the home page, next to the search box, select Mortgage Adviser and enter your postcode and hit search.

When the search results are displayed, in the filters on the left hand side:
Un-tick the Only show sponsored results box.
Expand the heading More filters and under Adviser restrictions, tick the box for Mortgage Broker (Whole of Market)

This should give you a list of potential brokers to contact in your locality.

Ask about their experience particularly in dealing with clients with adverse history and DMPs and make sure you understand from the brokers you speak to what fees will be charged and at what point in the process. They can be fee-free or fee. Ideally, after contacting them, they'll email you a couple of documents;

• their Terms of Business or Initial Disclosure Document (IDD), which will outline/summarise the service they provide and their fees along with how they are regulated by the FCA etc;
• possibly a Fact Find document that you need to complete to help them understand your full circumstances & requirements.

Get all 3 of your credit reports to the chosen broker for them to review and they will understand which lenders are most likely to accept your case based on your specific circumstances.

Jason_Bourne_2

Thrugelmir wrote: »

In no way being judgemental nor wishing to sound harsh. The truth of the matter was that you spent money you didn't have. You failed to repay it. This doesn't mean that you can no now going on a spending spree to fund a bigger house. Just because you are making regular payments under the DMP. If anything it sounds as if you could afford to repay more off your old debts.

The concern for any lender is that you haven't learnt from your mistakes of the past. More than likely you will end up over extending yourselves again financially. In this new era of responsible and affordable lending. You'll find it difficult to find lenders interested in advancing further money. Until you've demonstrated an ability to manage your own personal financial affairs responsibly.

Totally agree.

I've been there, spent 3 years on a dmp and was rock bottom after my self employed business failed. I had already defaulted on my cards and couldn't free up equity as a result. Lack of advice cost me.

DMP arranged my payments for me but I cut all luxurious out of my life until it was paid. Went a holiday last year for the first time on 4 years and have been saving hard ever since.

Too many people use a dmp to reduce interest and live a good life as if nothing has happened, saving up to pay f&f's.

Westminster

I have also been on a DMP up until around a year ago.

I am about to exchange on a property using a high-street lender with prime-style interest rate (with the help of a super broker who posts on here - I am happy to PM you with their name if you want to try them out)

These things can be overcome but you need a solid / sensible plan - and firing off an offer on a dream property and agreeing to sell your own without at least some cursory checks beforehand does not speak volumes for your ability to deal with financial matters.

I would stop - make sure your buyers and vendors know that you are having difficulty getting a mortgage ... PLEASE BE UPFRONT ABOUT THIS RIGHT NOW - otherwise other 'innocent' parties may well start spending their own hard-saved money only for you to pull the rug from under them.

Get some proper advice before you do anything else.

Pixie5740

What do you mean when you say you have a DMP? Is it one you set up yourselves? Was it set up through Step Change, CAP UK or PayPlan? Have you paid some company to do it?

From what you're describing I don't think you understand what a DMP is and how it works. If you entered into a DMP because you were struggling to make repayments and are now paying out less than you were before then you must have defaulted.

As others have said, get hold of all 3 of your statutory credit reports and don't waste money paying for pointless credit scores. Then find a mortgage broker who should be able to advise if there's a glimmer of hope or not.

Keith

Can't you use some of the sale proceeds to settle the debt?

Enterprise_1701C

I have heard that many people have failed the new affordability criteria when trying to remortgage to a lower rate.

Have you seen the new affordability criteria? Europe have basically changed the rules.

The DMP won't help, just saying things have changed.

xHannahx

The affordability takes the full contractual payments of those debts in the DMP, not the amount you are paying to the DMP.
Too many people have the idea that because they used to be eligible for a mortgage they will automatically be eligible for a new mortgage at a lower rate. This is simply not the case and catching far too many ill advised people out.

*feisty*fairy*

Hi all, thanks for your advice, in answer to a few questions yes the dmp is set up through stepchange and we did it rather than let things escalate and affect our home etc. we couldnt pay off the full amount so opted for the dmp, we have since been changing our lifestyle and have made numerous steps to prevent getting into this situation again. We didnt put the house on the market blindly, first of all we were incorrectly told by stepchange when we took the dmp that becuase we have never had any issues with mortgage, utitlities wtc that we should be ok mortgagewise in the future. Also we spoke to brokers etc prior to selling our house and were told aswell that becaused we have been with our lender almost 12 years, never missed a payment and are now asking for a LESSER amount than we currently have on our mortage plus have a sizeable deposit so our lender should be fine. Also the house move is not just because we fancy a change, we are living in a small 2/3 bed house with 4 children (1 of which has emotional disabilties so needs his own room) and are moving counties in order to get a larger property and reduce the mortgage and the term of the mortgage too, surely this is being sensible and trying to better our situation.

*feisty*fairy*

Are there actual lenders out there that will give us a mortgage? the halifax advisor has just rung me as they were trying to fit me in for an in branch application, i explained what had happened and she said it may be worthwhile putting in a complaint and seeing if the decision can be overturned, she said there is nothing to lose in doing so. Im waiting to hear back from stepchange before i do anything though as they are having an advisor ring me today.