DMP paid off, can't get a mortgage now!

F708dth

Hi,

I was wondering if anyone can't help/recommend a path.

5 years ago I was in a both of bother so I signed up to the CCCS (now StepChange) DMP plan. During the time I was on the plan I started my own business and my circumstances and income changed so I was able to pay off the plan early in full.

After a year and a half of saving we manged to get quite a good deposit together (£27,000) and secured help to buy on a £234k covering 25% so we need a pretty low LTV mortgage.

Is there anyone out there that has been through something similar that managed to get a mortgage with someone? I have already paid about £5k towards the fees and to secure the new build plot (not funded from the deposit amount) and I'm sick to my stomach to think there is a chance we might not get our little house.

We're not trying to lend outside our means in any way, in fact our rent is mostly likely higher than our mortgage repayments and we've never missed a payment on that and managed to save a deposit at the same time.

We have no other credit whatsoever.

I feel a bit sorry for myself right now because it feels like no matter what you do to sort things out, pay everything off and change your situation you still get penalised.

Can anyone recommend a mortgage company that would work with us?


Thanks

Jim

ACG

Its probably not your income which is causing the problem, its more likely the DMP (the reason I bring this up is because of your secod to last sentence).

Speak to a broker. There are likely to be lenders you can get a Mortgage with but what you can get and the rates available will depend on the finer details.

F708dth

Thanks. We're working with a broker and it was her that put us forward for Nationwide. I'm just concerned that are options are running out.

kingstreet

You don't evidence self-employed income with bank statements. You need two years' SA302s, or an accountant's certificate and the lender will take an average of your latest two years salary and dividends.

Can you prove affordability in a way which a lender will accept?

Ignore the garbage Experian are flogging as a credit score, it's meaningless. Lenders compile their score from credit file data and the rest of the information you supply on the application.

You are completely sure you were declined for adverse credit history and nothing else?

What remains visible on your credit file to any lender searching you?

amnblog

F708dth wrote: »

Thanks. We're working with a broker and it was her that put us forward for Nationwide. I'm just concerned that are options are running out.

A DMP and Nationwide was the suggested route?

Presumably your credit file still shows historical late payments and possibly defaults?

F708dth

Yeah they are still showing on there, they have been cleared for close to 2 years now but I think they will show for another 3 from what I have read?

F708dth

Yeah I submitted SA302s for the Nationwide application as well as audited accounts for the last 3 years.

Yeah it's showing all the adverse credit I had but they are all shown as settled. They are close to two years now as a fully settled state but they are still showing and from what I have read they will do for anther 3 years.

kingstreet

Many lenders won't accept any visible adverse credit, settled or otherwise.

Some will accept the odd default as long as it was below a certain amount and registered more than x years ago.

Did your broker actually look at your credit file before selecting Nationwide?

matchboxfull

Can I ask, at what point did Nationwide decline? At the initial DIP stage, or later into the application after you'd submitted documents?

xHannahx

Sack off the broker who suggested nationwide, and find a broker with experience of adverse credit.
A quick glance at nationwides criteria tells me they weren't going to touch you.
There are lenders out there who ignore defaults older than 2 years (the date of default, settled or not they ignore if default date greater than 2 years)

F708dth

We had a mortgage in principle from Nationwide and paid all arrangement and survey fees etc, it was then rejected a few weeks later but I'm not certain at what point is was rejected.