Defaults and mortgage application

Rodis33

Hi everyone,

First time posting so please bear with me.

I am hoping to apply for and get a joint mortgage with my now wife. I had a number of defaults many years ago which have now disappeared from my credit file but I am still paying for via a debt management plan. When I come to speak with a broker what level of detail should I declare? The debts as they are in full and that it is being managed via a debt management plan or just the amount I am paying each month? Also, considering the defaults no longer appear on my credit file should I still keep paying for them or do I have any other options?

I hope that makes sense and that I posted this in the right part of the forum, do excuse me if not. Any help, advice etc. Would be much appreciated.

ACG

Explain it to your broker.
You had defaults registered whenever, but they have now dropped off your report and you are paying them via a DMP. Some lenders will have issues with it, others should be fine.

Let them decide what needs to be declared to the lender and how to package it all up, thats what they get paid for.

Thrugelmir

Rodis33 wrote: »

I had a number of defaults many years ago which have now disappeared from my credit file but I am still paying for via a debt management plan.

Little point in applying to any of these lenders for a mortgage. Your broker needs the full facts.

ap1985

Rodis33 wrote: »

Hi everyone,

First time posting so please bear with me.

I am hoping to apply for and get a joint mortgage with my now wife. I had a number of defaults many years ago which have now disappeared from my credit file but I am still paying for via a debt management plan. When I come to speak with a broker what level of detail should I declare? The debts as they are in full and that it is being managed via a debt management plan or just the amount I am paying each month? Also, considering the defaults no longer appear on my credit file should I still keep paying for them or do I have any other options?

I hope that makes sense and that I posted this in the right part of the forum, do excuse me if not. Any help, advice etc. Would be much appreciated.

My experience with DMP is that most Lenders requirement is that you have been out of a DMP for at least 12 months. I used to be in a DMP with defaults and I struggled to find a lender to lend to me. However, I did not want to try a sub prime Lender which may be your option.

Rodis33

ACG wrote: »

Explain it to your broker.
You had defaults registered whenever, but they have now dropped off your report and you are paying them via a DMP. Some lenders will have issues with it, others should be fine.

Let them decide what needs to be declared to the lender and how to package it all up, thats what they get paid for.

As an adviser yourself, how much would the decision around offering a mortgage affect your decision. I should add that I will be applying for a joint mortgage with my wife, she already owns the property we live in with a considerable amount of equity and immaculate credit rating, hopefully all factors in our favour?

amnblog

What is the objective of moving to a joint mortgage?

ACG

Rodis33 wrote: »

As an adviser yourself, how much would the decision around offering a mortgage affect your decision. I should add that I will be applying for a joint mortgage with my wife, she already owns the property we live in with a considerable amount of equity and immaculate credit rating, hopefully all factors in our favour?

I dont think I understand the question?

Rodis33

Sorry, that wasn't clear. Considering the information you have and I appreciate its quite limited, what advice would you give as a broker where one partner is considerably more credit worthy than the other. I should add that I am financially much more stable and jointly we earn just shy of £80k, with the equity we can release from the property we are in as our deposit, would that help our case to apply for a joint mortgage? In answer to another posters question the reason for the join mortgage is to upgrade and purchase a house and we can probably get more money by combining our salaries rather just using my wife's.

I hope that makes a bit more sense

ACG

I would be surprised if this can not be placed jointly at normal rates based on what you have said.

Thrugelmir

Rodis33 wrote: »

I should add that I am financially much more stable and jointly we earn just shy of £80k,

The question that will be asked is why you haven't settled your debts. Treating a DMP as an interest free loan doesn't do one any favours.