Mortgage after DMP

Soph86_2

After 6 years of hard work scrimping and saving, I've managed to pay off almost £50,000 of debt and become debt free!

I'm now looking to the future and hoping to buy a house early next year once I've saved a 10% deposit plus a buffer fund so I (hopefully!) won't get into financial difficulty again.

I wondered if anyone could help me with their experience of mortgage applications because having spoken to a mortgage broker, I will never be able to get a mortgage (without going sub prime) because I've had a debt management plan. He said that I will always need to declare that I've had one, because most application forms now ask if you have 'ever' had a CCJ or had to arrange payments with creditors. I thought they only went with what is on your credit file, except if you have had an IVA or been declared bankrupt.

My credit report is now clear, all of my defaulted accounts and CCJ has been removed from my 3 credit files, and my scores are showing as 'excellent'.

I'm absolutely gutted that after all of my effort to pay off everything I owe, and get my credit report clean, I still might not be able to get a mortgage!

Any advice and experience that you wish to share is gratefully received!

Soph x

sourcrates

Hi,


A debt management plan is not a regulated arrangement, its not a form of insolvency, or anything of that nature, it will never be recorded on your credit file as a DMP, only the defaults related to the debts your paying through it.
Once these defaults are off your file, there gone for good, there will be no record of them anywhere else, and no one will know you ever had a DMP.


Unless you choose to borrow off a lender who was apart of your DMP, and they still hold records of it, they will never be any the wiser.


Do you understand where I`m coming from ?

Soph86_2

I do understand, thanks for your swift and very helpful response

One more question....Do banks definitely not share information about past defaults and CCJs with each other if they are not in the same banking group? Is it definitely only the credit reports that are used to share information.

sourcrates

Same banking group maybe, but information is usually only kept for 6 years, its impossible to say what info they may or may not share.

I have known people who have been bankrupt years ago, and obtained a mortgage later on, so I would not worry too much about what one person might say, just make sure you keep a good credit record, and you will have as much chance of been accepted as anyone else.

Soph86_2

Thanks I'll carry on saving, and keep my fingers crossed then!

Brock_and_Roll

It goes without saying that if any mortgage application form asks the question:


"have you ever had a CCJ or had to arrange payments with creditors?"


...then you will need to answer yes, otherwise you will be guilty of mortgage fraud.




That said, the broker is talking out of his butt - time heals and as you will see from elsewhere on this forum, previous bankruptcies, DMPs etc are not a permanent barrier to getting a mortgage.

KirstyO

just my own experience, cannot speak for others...I got accepted for a 95% LTV HTB mortgage from Natwest. DMP ended 2nd Jan 2015, Default is showing until May 2018. Living proof that it can be done! I went to a countrywide mortgage advisor (can be found in local estate agents) and he was brilliant. He charged me £349 for his services however as a young single female he took all of the stress out of the process. He found and applied for my mortgage with me, I used their conveyancing and legal services so he was able to instruct on my behalf, and set up my buildings and contents insurance... and all I had to do was read lots of paperwork and sign some of it. Completely hassle free and it gave my parents peace of mind that it was being done correctly. I also felt that at any point I could walk away and wouldn't be harassed for doing so. You'll find these people in branches listed on this website


https://www.countrywide.co.uk/about/high-street-brands/


PS - I don't work for countrywide, I just had a really good experience with this chap and the service I bought. I have had bad experiences with other branches of countrywide in the past!

bsclp118

I'm only just at the start of my DMP journey but good to know I don't have to completley rule out the idea of a mortgage Kirsty - thanks! :-)

bengal128

Sorry to jump on here, but I am just trying to get full and final settlement together on my DMP. Did you pay do a F&F on your DMP? As I'm waiting to get mortgage sorted too but worried that F&F will affect it. I have paid £28,000 already over the last 6 years and have another £17,000 left. Thanks and sorry for jumping on this post.

glentoran99

KirstyO wrote: »

just my own experience, cannot speak for others...I got accepted for a 95% LTV HTB mortgage from Natwest. DMP ended 2nd Jan 2015, Default is showing until May 2018. Living proof that it can be done! I went to a countrywide mortgage advisor (can be found in local estate agents) and he was brilliant. He charged me £349 for his services however as a young single female he took all of the stress out of the process. He found and applied for my mortgage with me, I used their conveyancing and legal services so he was able to instruct on my behalf, and set up my buildings and contents insurance... and all I had to do was read lots of paperwork and sign some of it. Completely hassle free and it gave my parents peace of mind that it was being done correctly. I also felt that at any point I could walk away and wouldn't be harassed for doing so. You'll find these people in branches listed on this website


https://www.countrywide.co.uk/about/high-street-brands/


PS - I don't work for countrywide, I just had a really good experience with this chap and the service I bought. I have had bad experiences with other branches of countrywide in the past!

that's reassuring as im currently hoping for a mortage (well remortage) the mortage advisors in branch don't think its a problem (my defaults are pretty much same as yours) paid off last year and its the same banking group

KirstyO

glentoran99 wrote: »

that's reassuring as im currently hoping for a mortage (well remortage) the mortage advisors in branch don't think its a problem (my defaults are pretty much same as yours) paid off last year and its the same banking group

I was pretty despondent when I started my search. I had gone to a 'bad credit' mortgage firm who quoted me a ridiculous mortgage and insisted I would need at least 20% deposit. This chap was brilliant from day 1. He admitted that the whole of the market would not be an option, but his clever tool showed me exactly what I might get accepted for. We ended up going for the cheapest mortgage, but fixing for 5 years instead of 3. It makes my payments for the next 5 years a bit higher, but at least I know exactly what my mortgage will be for a long time!