Move House to clear DMP

Ribbons473

Just looking for some honest advice, sick of our DMP, approx 15 years remaining so the plan is to sell our house, clear debt and start afresh, obviously we would prefer to move into our own home again rather than rent so what I'm asking is what are the chances?

Once sold we would have a deposit of approx £180-200K and looking for a mortgage of around £315K, we will still struggle unfortunately due to London prices to buy at this price!

Will any lender consider this? Our current mortgage is with C&G always paid on time but obviously credit rating rubbish due to DMP, will they consider that we are clearing the DMP with the sale of the house?

I have approached 3 brokers so far who have all pretty much told me not achievable.

If we couldn't get a mortgage and we move into rented how long would we have to wait roughly before applying again, the DMP started 5 years ago.

Many thanks in advance

Thrugelmir

Are you proposing to borrow less than you already are?

Ribbons473

Yes, hopefully!

Thrugelmir

You could try drawing up a detailed proposal and put that forward to your existing lender. By reducing their exposure as part of the exercise they may well buy in. Lenders have a duty of care now. Something that can be played upon.

Ribbons473

Interesting, I have been 'advised' C&G or Lloyds for that matter 'wouldn't touch us' !!

Thrugelmir

Ribbons473 wrote: »

Interesting, I have been 'advised' C&G or Lloyds for that matter 'wouldn't touch us' !!

Hence why I said a detailed proposal previously. An underwriter may well be supportive if there's genuine intent on your part. Words are easy. Taking action not so.

ACG

when did you enter the dmp?

kingstreet

Ribbons473 wrote: »

Interesting, I have been 'advised' C&G or Lloyds for that matter 'wouldn't touch us' !!

There isn't going to be a high street resolution until the DMP has been gone a few years into the past and any other damage to your credit history has receded.

Ribbons473

ACG wrote: »

when did you enter the dmp?

We bought this house as a renovation project and mortgaged up fully which was at the time based on my fairly large income, a year into renovations things went progressively wrong with builders and mounting costs which resulted in us maxing out CC and loans etc for me to be made redundant 6 months later, this was all around the time of the crash and I struggled to find any employment even nearly matching my salary, we maybe should have sold up then, in hindsight, however eventually opted for the DMP.

Ribbons473

kingstreet wrote: »

There isn't going to be a high street resolution until the DMP has been gone a few years into the past and any other damage to your credit history has receded.

So would you advise a sub prime mortgage or would we be better selling, clearing the DMP and waiting till we are able to approach high street?

ACG

When did you enter the DMP though? As in month and year? It does not need to be exact but just a ball park to work off.