Mortgage while on DMP

paddypuma

Hello guys,

Myself and my partner have been renting together for over a year and we'd now like to buy a house. We are both on good salaries and could afford to make the mortgage payments but as I am on a DMP, I don't know if we'll manage to get the mortgage.

It's quite depressing that my stupidity a few years ago is hampering our chances at getting our own house!

Has anyone been in a similar situation to myself? Is there any light at the end of the tunnel or are we going to have to wait for years to be able to get our own house?

Any advice would be appreciated. Thanks

Jo

purpledelly

Hello Jo,
My husband and I have been on a DMP for 3 years (we got our original mortgage before the DMP began) but managed to remortgage with another company earlier this year with no problems. It is a specialist lender but the rate is excellent and we saved lots with their fixed term deal.
We went to a mortgage advisor who we had used before and were happy with and he sorted it all. He did charge a small fortune though (2% of the mortgage), but we weren't sure how to approach the right company otherwise. I think we'd be more confident in future about going it alone though. We've never defaulted on our mortgage or council tax or anything even before and during the DMP but I don't know if that matters or not (or even applies to you).
Also you may find they lend a but less than other place (e.g. many normal lenders offer 95% of the value of the house but our company lent only up to 75% of the value).
I'm happy to give you more specific details if you'd like, but I think preferably by email or PM if that's OK.
But basically you CAN do it and it isn't always at extortionate rates.... hope that helps

paddypuma

Thanks so much for the reply,

I'd be very happy for you to go into more detail! Feel free to pm me.

It's so good to know that it's possible. We've been worrying about it!

blissfulbabe

I'm in the third year of a DMP, paying back £36,000, and managed to get a mortgage as a FTB (no CCJs but lots and lots of defaults).

I can't reccomend strongly enough that you use a broker who understands the sub-prime market. Orginally I contacted an on-line company, who were able to offer a mortgage - at 6.89% and with a £3000 arrangement fee. My parents really pushed me to use their FA who got me a deal at 6.15%, with no fees. This was only in February and my deal seems pretty good compared to what's happening to the mortgage market at the moment.

The thing is, a good FA can save you thousands and this can be the difference between whether you can afford a mortgage or not but I would never reccomend these on-line companies as they are so expensive - the broker assured me that I wouldn't be able to find a more competetive rate but my parent's FA found me a much better deal - with the same company that the on-line broker was using!

By using a good FA I saved £3000 in fees and my mortgage payments are nearly £80 a month lower, which means that I haven't had to lower my payments to my DMP (which was a priority to me).