Require advice - am in a catch 22 situation

Vickula

Hi
After splitting with my ex-husband I managed to accumulate some debt whilst I found my feet.
As part of the divorce settlement it was agreed that I would get a lump sum from him once his name has been removed from the covenant on the matrimonial home. I live in the house and we both pay an equal share of the mortgage. The house has been on the market for over 2 years with little interest plus it needs work on it.
I have been refused lending from my current mortgage provider to have the property solely in my name because they wanted me to apply for the whole outstanding mortgage rather than what I needed to borrow once the lump sum had been transferred.
I approached other mortgage lenders but because of my bad credit score none would commit.
I have been on a DMP for 18 months - have just had a budget review and increased my payment.
The lump sum owed to me by my ex would clear half the mortgage. Taking into consideration the amounts of my current mortgage payment and DMP payment and judging by online mortgage calculators I can clearly afford the repayments for the amount I need to borrow to clear my debts and have the house transferred into my name.
Is it just the bad credit score, as I have 2 defaults recorded by creditors, that is putting lenders off??
Any advice on how to go about getting a mortgage with bad credit would be appreciated.
Thanks

fatbelly

This isn't the best board for mortgage advice (try mortgages and endowments, maybe) but I think you're going to struggle to get a decent deal, and you should not consider converting your unsecured debt to secured (only just realised you were planning that).

It may be best to get your credit file sorted first. When do the defaults drop off? When does your dmp finish?

Vickula

Have posted the thread in the mortgages board!

Sazzie23

Hi Vickula

Just thought I would add, I tried unsuccessfully to remortgage as I am in a DMP, despite never missing a mortgage or secured loan payment. My existing lender did then agree to remortgage at a better rate. I spoke to several brokers non of which would touch anyone in a DMP as they said no lenders were currently considering, however things do change so it's always worth checking.

Also just to let you know there is a DMP mutual support thread, none judgemental and worth a read/post for advice or just a shoulder to lean on or have a rant.

Vickula

Thanks for that Sazzie - am a bit sick of the situation after 2-3 years - feels like I am being penalised for escaping an abusive relationship. I wont be fully satisfied until I'm totally independent and have escaped my ex's shackles and in the meantime he still has this hold over me!
Try telling that to a computer which makes all the decisions!