In a DMP any chance of a mortgage

Tillypop

Good evening.
I'm looking for some advise regarding getting a mortgage whilst in a DMP. Is there any lenders that would consider this? I currently owe 15000 and paying creditors via a DMP I have no defaults or CCJ I have been advised I need a broker with specialist knowledge. I have approached a broker off the Internet and been told it will cost me £1495. I was informed that possibly two/ three lenders but all depends on affordability. Any advise would be great please.

ACG

There are lenders but probably only a handful at best.
Affordability will be an issue as to how it all appears on your credit report and when started.

Thrugelmir

How are you proposing to fund the deposit along with all the costs relating to the purchase?

Tillypop

Hello, thank you for your reply, I have sold my house and had an offer accepted on a home. I have 22500 deposit. I have been declined by Halifax and advised to try an adverse specialist broker? Thank you

ACG

Your unlikely to get a high street lender although it is dependent on the circumstances.

You would be best with a broker who has experience in placing adverse mortgages.

Thrugelmir

Tillypop wrote: »

Hello, thank you for your reply, I have sold my house and had an offer accepted on a home. I have 22500 deposit. I have been declined by Halifax and advised to try an adverse specialist broker? Thank you

Have you not considered wiping the slate clean?

Tillypop

Hi, I have got 5000 left to pay off some creditors from the DMP. I know it won't reduce it by much but it I hope to get a reduced settlement. Thank you

amnblog

Why have you not engaged the broker who said they can do this for you Tilly?

Pixie5740

I don't understand. I thought when you entered into a DMP it was because you are no longer able to keep up with the minimum contractual payments on your debts. Meaning that you will, at some point, defaulted with your lenders.

ACG

Not all will default you the individual, also not all providers show on every credit report. Sometimes when it all comes together it can make the credit report look a lot better than maybe it will when its put infront of an underwriter. Sometimes it can even play in to the applicants favour, as an example I had a client who had a £15k loan and was paying back £10 a month. The lender in question went off the monthly repayments rather than the balance of the loan... which MASSIVELY helped his affordability.

As ever its all about finding the right lender for the circumstances.

Thrugelmir

Pixie5740 wrote: »

I don't understand. I thought when you entered into a DMP it was because you are no longer able to keep up with the minimum contractual payments on your debts. Meaning that you will, at some point, defaulted with your lenders.

A DMP is an outright default. Normally interest is frozen. Many people then view it as an interest free loan rather than repaying it quickly. More often or not a short sighted view.