Mortgage after DMP

scrivolenski

Hi,
We have recently paid off a DMP with defaults showing at 4 years old, with no other debts at all. We are now in well paid jobs and have a deposit of £50k to buy a house and are looking to get the best house possible so that we can have this family house "for life".

I have looked on the internet and am struggling to get any decent information on our chances of arranging a mortgage of around £350k. The mortgage would be around 3.5 time joint salaries.

Does anyone have any experience in this area and thoughts on our chances? I am aware we will most likely have to pay higher interest as our defaults have yet to fall off our credit records but we are now lucky enough to be in a very sound financial position and wish to buy a house.

Any thoughts very much appreciated.

kingstreet

You will have options and a decent independent mortgage broker is the best place to establish them.

Thrugelmir

When did the DMP end?

What's the source of the deposit?

Playing_with_Fire_2

Read up on affordability checks and make sure your bank statements look solid. Some cheeky publications have suggested withdrawing a bunch of cash early on, then having 3-6 months of super frugal looking bank statements and credit cards and then submitting those to the lender. Not a recommendation.

Have a think about how much house you really need. It would be unfortunate for you to work so hard to complete your DMP and get everything ship shape only to over extend your self by taking on a huge mortgage. Buying the best house for you won't necessarily be the same as the most expensive house you can possibly borrow for. If you buy a house that has an option to extend or be improved as you go, you'll have more options later for less financial commitment now.

scrivolenski

Been out of Dmp for 6 months and the deposit has come from the sale of our house. We relocated a number of years ago but couldn't sell house so became accidental landlords, We rent our current house.

Thrugelmir

Merely an observation. You could have sold the property to clear your debts quicker. This would have more allowed time for your credit history to heal. Six months looks too convenient.

amnblog

You have should options Scrivolenski as Kingstreet says.


Key will be that the DMP was well managed and current bank statements look sensible.


You might find your deposit is looking a little tight and 15% may do it, or you may need 20%.

Thrugelmir

amnblog wrote: »

Key will be that the DMP was well managed

Interesting term not one encountered previously to describe a DMP. .