Will my DRO stop me getting a mortgage in the future?

kikitab

Hi everyone,

Could anyone shed any light on my situation. I applied and received a DRO (Debt Relief Order) over a year ago now. I'm aware it will appear on my file for up to 6 years and affect my chances of getting credit thereafter... However, I just wondered if anyone has been in a similar position and managed to get a mortgage (or maybe looking into getting one). I'm hoping that as my circumstances improve I can save a 10% deposit (over the next 5 years) and concurrently improve my credit score in order to secure a mortgage. Any help/advice/experience? I'm not hopeful as DROs are relatively new and I'm assuming those who have them won't be looking at getting a mortgage anytime soon, but I thought it'd be worth a try.

Thanks in advance,

K

[Deleted User]

If the DRO is a year old and it will take 5 years to save the deposit, then it'll be irrelevant, unless specifically asked.

kikitab

Thanks for the response, I have a feeling they will ask and it will still have an effect etc... I've started saving and trying to keep positive about it all, though!! ��

DCFC79

Remember to not focus too much on your score as lenders don't see it, your history is whats important and what lenders see.

kikitab

I really, really didn't know that. Great advice, thank you!

Danieller15

Hi there, I'm not sure if you're still following this thread but wanted to give you my experiences.


I had a DRO in August 2010, discharged August 2011 and due to come off my file August 2016.


Me and my partner are currently saving for a deposit and hope to apply for a mortgage in September/October time, so the record of the DRO won't be on my credit file. I have done extensive research and found that some high street lenders may lend to us. We are considering Halifax and Barclays.


Halifax - you don't need to declare the DRO if it was registered over 6 years ago but interest rates aren't great for a high street lender.


Barclays - May need to be declared however I have been advised that it won't affect the application, as long as it was over 6 years ago no longer on credit file (A Barclays advisor told me this). Interest rates miles better than Halifax.


I've heard that Nationwide are pretty good too.


So there is hope! Don't give up


Also, consider an experiences mortgage broker when you look into applying for a mortgage, they're very clued up on lenders and can advise the best to go for.

cjintensde82

Hi, dunno if this helps shed any light but is my situation as 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

DCFC79

cjintensde82 wrote: »

Hi, dunno if this helps shed any light but is my situation as 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

Were the debts with the bank you spoke too ?

Try another bank, try a broker.