DRO and chances of getting mortgage after few years

Shellisland

Hi new to here as member but have used forum for a while.

I am at the point of considering a dro. I'm up to date with payments on all accounts but feel I cannot carry on the way I am as my debt is increasing and increasing because I cannot afford to cover food costs each week after paying debt repayments and therefor getting further into debt. Debts currently stand at around 17-18k
The only thing holding me back is that I would like to buy my council property in the next few years but there is no chance of that happening. Can't afford to save deposit and with these debts hanging over my head.

So my question is, can someone who has had a dro get a mortgage at any point after the dro has been discharged?

Thanks

DorisTrousers

The honest answer is that it will be down to a mortgage lenders own internal criteria, so it is difficult to give a truly accurate reply.

On the plus side, you will no longer have any debts, so you will be freeing up more money for a mortgage repayment, and they are very hot on affordability right now. You will also have opportunity to start building up a deposit over the next few years. My knowledge of RTB is limited, however I believe you can buy at a discount, and therefore that, plus any deposit in the form of cash, should count for you.

On the down side, the DRO will appear on your credit file for 6 years, so some lenders will not consider it. A chat with a whole of market mortgage broker should give you some more pointers.

You also have to consider the risk of NOT doing the DRO, which is that the debt will get worse, as you state above, which may then mean BR, which at the very least will cost you more, and of course some lenders may view BR differently in the long run to DRO.

There is a useful article here http://debtcamel.co.uk/worried-about-debt/mortgages/

Good luck

Shellisland

Thank you for your reply doristrousers much appreciated. Just to clarify what is BR? Thanks

DorisTrousers

Sorry, get used to speaking in initials, terrible habit.

BR is an abbreviation for Bankruptcy, and a DRO is a cheaper alternative to a full blown Bankruptcy.

cjintensde82

Hi, my husband are kind of in the same boat. 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 debt relief order 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 ?