Applying for a mortgage once DRO dropped off credit report (6 years)

Danieller15

Hi everyone


I had a DRO in August 2010, discharged in August 2011, due to come off my credit report completely in August 2016.


Me and my husband are looking for a mortgage. We are looking at properties around £150,000 with a 10% deposit (£15,000) roughly and will be looking after August 2016 so there is no record of the DRO on my credit file. I will declare my DRO on application forms if asked. (I know most forms will have a question like have you ever been declared bankrupt)


I have checked all 3 credit agencies and all my information is correct and up to date so no issues there, and my husband has never had any issues so will be no problems there either.


We both work full time and annually bring in around £40,000 altogether.


My question is are we likely to get a mortgage with the 10% deposit, who are the best lenders to go to?


It's been worrying me for some time as we are ready to buy and don't want to rent any longer, we are set on getting a mortgage in the next year so don't want to wait any longer or save any more of a deposit, we can't get it to anymore than 10%.

Johnsmith2016

Try nationwide or skipton - you can view there lending criteria online. Nationwide accept ex bankcrupts 36 months after discharge, so I would think a dmp after 6 years will be ok. Of course always wise use a whole of the market adviser who will be able to match you to lenders

Danieller15

Thanks for the reply. Any suggestions on a market advisor to go to? Also, would Nationwide/Skipton accept a 10% deposit do you think?


Thanks again.

cjintensde82

Hi, my husband and I are in the exact same boat. He has great credit but I have unfortunately had a DRO from debt when I was 18 yrs old. (I'm now 34) My DRO 6 years is up this month. We want to get out of rented desperately and thankfully now have the money to do it. We have an annual combined income of about 47k and we have a massive 80k deposit. I have worked so hard over the last 16 years to stay as far out of debt as possible just to find out from a mortgage advisor today that apparently all lenders will be extremely reluctant to ever lend me money and only 4 came up as possibilities, even after the 6 year period. Apparently if I had gone bankrupt with a debt of 100k instead, more lenders would be willing to help me out, even though at the time of taking the order out I was told it was no where near as bad as bankruptcy and was only for 10k!!! Go work that one out. Frustrating thing is in branch I have one of the best credit scores you can get within a bank but it means nothing. I am so gutted you can't believe. If anyone has any help or knowledge on this and whether the advisor was correct it would be so appreciated. Who would have thought something from when you were 18 would affect the rest of your life so much

mwarby

Was this an independent advisor, or a mortgage advisor for a particular provider ? If so which ?

fatbelly

cjintensde82 wrote: »

...apparently all lenders will be extremely reluctant to ever lend me money and only 4 came up as possibilities, even after the 6 year period. Apparently if I had gone bankrupt with a debt of 100k instead, more lenders would be willing to help me out ...(

Sounds like nonsense to me. The lenders involved in your DRO may well refuse to ever deal with you. That would be their decision based on their criteria, and it is unlikely to matter whether it was bankruptcy or a DRO.

However, for those relying on information from a credit check, they will not know about your DRO and would only find out if you revealed it as the direct answer to the question 'have you ever had a DRO?'

Danieller15

Hi cjintensde82 - its very frustrating! I've been doing my research since my post on here and have found that Halifax would consider me once there is no trace of the DRO and everything else on my credit file is clean, no arrears/defaults etc and have also looked into Barclays who have stated that the DRO would not affect an application with them as long as it was entered over 6 years ago and no record of it on your credit file anymore. I have looked at different application forms for many lenders, a lot do ask if you've ever had some form of insolvency, which of course we would need to answer yes to, which straight away could decline the application. But some don't seem to ask this, Halifax for example ask have you entered into a DRO in the last 6 years, which we can say no to when we are ready to apply (will be September for me!) I couldn't find any trace of a DRO/insolvency question on the Barclays application, so not sure if they would even ask throughout the application but like I said they told me it wouldn't affect it. So there is hope - and with your £80k deposit I really think you shouldn't struggle, just do your research before applying.