Mortgage with defaults

scottw1991

Hi,

First time posting but here it goes.

I'm a first time buyer looking to get my foot on the property ladder towards the end of the year. Should have 5-10% deposit. I have been on a DMP which started oct 11 and lasted 2 years. It was pay day loans an 02 account and a credit card. The DMP is satisfied as of 1 Nov 2016 according to my credit expert. Now I know the defaults will stay for another year but do you think I will be able to get a mortgage at the end of the year when my DMP is satisfied? At that point my defaults will be over 5 years old.

On a side nite as well does anyone have any advice about claiming back interest on pay day loans. Not done yet and they really prayed on me when I was at my lowest point.

Thanks for any help. Feel like I'm finally seeing light at the end of the tunnel after a hard 5 years!

Thrugelmir

The DMP is more damaging than the original defaults. Where's your deposit coming from?

scottw1991

savings and help to buy Isa

banks4u

Well I went into a DMP in 2012 so my defaults are from 2012 and 2013. I cleared them all off in 2015, however I did have a mortgage and sold my house. A year on I have now got a mortgage with the Halifax my loans were with the Halifax which was where the DMP was.

I do have 20% deposit and they wanted a very good explanation. We didn't need all our income so that may have played apart of it.

scottw1991

Thanks for the reply.

I tried to do an online AIP with Halifax tonight but failed on the initial credit check

MortgageMamma

Don't try anymore AIPs! You need professional advice as credit scoring continually will damage your credit rating further. You will need more than a 5% deposit with defaults and a DMP in the background. My advice would be to hang fire until they are all off your credit report. Even then you can still get caught out with some questions on a lenders application form as they generally say


"Have you ever had a CCJ/Default/IVA/Debt Management Plan". They don't say have you ever had it in the last six years, its not always time sensitive and to answer knowingly false answers is considered mortgage fraud.

My advice to you would be get a copy of your credit report and send it to a whole of market mortgage adviser, and get them to check the credibility of your plans, tell you what deposit you will need and do an affordability calculation at the same time to see how much you could realistically borrow.

Kaggs!

Does the lender take into consideration the hep to buy scheme is part of the deposit?