Getting a mortgage after a DMP. Anyone tried?

Zulu_Dawn

I am looking for advice from people who have been through a similar situation.

A business venture (!:o ) went wrong leaving us with substantial unsecured debt. I am now on a DMP and paying this off monthly and have met all obligations under the DMP. In terms of our credit record, there are defaults on the file from CC companies but no CCJ's. We have continued to pay the mortgage throughout on time etc.

We have substantial equity in our house. We are therefore proposing to sell the house. We will then be able to clear all our debt leaving us with a decent deposit for a new house.

Our hope would be to put down a 25% deposit on the new house and borrow 75% as a new mortgage. The mortgage would be at a similar value to the one we have now and would represent around 3 times our joint salaries.

I feel this should be fine but would be interested in other peoples experiences. Clearly the whole thing becomes a waste of time if I have to borrow at exorbitant rates or I will not be able to get a mortgage for six years. I am also slightly wary about approaching banks at this stage as I don't want to jeopardise our existing arrangements.

Thanks very much in advance

ZD

PS I have also posted this on the mortgage board.

pania

bump bump!

Alisonbel

We are on DMP with CCCS and recommended Charcoal to see if we can get better deal etc on mortgage, I have spoken to them but have done nothing about it as sorting a new job at present. Has anyone out there dealt with them??

fermi

This question has been discussed on the bankruptcy board with respect to getting mortgages after that. Several members have reported being able to get a fresh mortgage (albeit at a slightly higher deposit/rate) after a couple of years.

If that's possible after bankruptcy, then I cant see a DMP causing any unsolvable problems in the medium term.

huxleypig

Have been on DMP with CCCS for a year. Similar story - business venture went wrong. Re-mortgaged this month to sort debts and pay back our very understanding parents. It took the broker a while to find a deal for us as my credit rating was very poor. However after four or five months the deal has just gone through. I would suggest you contact an IFA to get the best advice.

Good Luck !!