Applying for mortgage while on DMP

DFW-Dazzler

Hi
Does anyone have any success stories to share about applying for a mortgage while on a DMP? I've been told by StepChange that I can start to apply for mortgages after completing 1 year of DMP payments.

Cheers

DFW-Dazzler

rockm87

Hi and welcome

Can i ask more about your situation? how much have you got left to pay off?

I dont think it would be the best idea to take on more debt, while trying to pay off your current debt. Houses arent cheap, and I dont just mean the mortgage.

You're probably better off renting until you get a little more stability.

glentoran99

I find that very strange, by essence a DMP is your not meeting contractual payments so im not sure how you could afford a mortgage, taking away the fact of your now poor credit history being a block to getting a mortgage

HappyMJ

You can apply for a mortgage after one year on a DMP to a mortgage company that accepts defaults that are over one year old. You'll need a broker to help.

The payments you make towards your DMP will reduce the amount you can borrow.

If your partner has the deposit and good credit you might find it a bit easier to be named on the mortgage even though you are the one with the bad credit.

DFW-Dazzler

My debt is £26k. I am currently paying high rental costs and could easily pay less for a mortgage (even at poor credit history rates). If I get a mortgage I can then also afford to pay more back on my DMP

DFW-Dazzler

You should also know that I'm 46 years old so this is basically my last chance to get a house and pay it off before I retire

rockm87

How long have you got left on your DMP? How long will it take you to pay off?

Even if you give it another year or so, paying down your balances, it could help you out.

another_casualty

I'm in a similar situation . I'm trying to remortgage while on a dmp .
I've been on my dmp for almost 4 years. A lot of lenders insist that you pay off your dmp , as part of the amount you borrow . After affordability tests, doesn't leave you left with much .
Then the interest rate will probably be higher .
Hope it works out .