Have I got any hope of owning a home

new_1298

Hi All,

I am currently on a DMP with payplan. My defaults are due to drop off soon but here is still about £14000 owing, which I am steadily paying off with no payments missed.

My husband and I earn about £55k a year total.

Have I any hope of ever being able to get a mortgage, we have seen a shared ownership home and are considering just putting it in my husbands name if he was accepted for the amount. Or seeing if there is anyway my earnings can be taken into account.

Also am I better off leaving my DMP and paying direct so that it just looks like debts being paid instead of an official debt management plan?

Many thanks in advance.

erin110

Its very hard to say without completing a full fact find so I would recommend you speak to a broker who deals in adverse.


As for shared ownership I am personally not aware of any adverse lenders who will consider shared ownership and a current DMP. In that case maybe it would be worth putting it in just your husbands name. However, by not being on the mortgage you will not be on the deeds and by not having your name on the deeds you will not have an interest in the property so it would be advisable to seek legal advice around that.


As for the DMP again its hard to say without knowing the full details. I do know that there are only a handful of lenders that will consider a current DMP and these lenders will require you to put down at least a 15% deposit.


Now as for keeping/not keeping the DMP. When you say should I just pay the lender direct what does that mean? Do you mean to pay them the equivalent of what you are currently paying to them through your DMP or do you mean pay the creditors the full amount they are require each month as it has a difference. If you want to pay the lender the reduced rate then you are entering into an "arrangement" which comes with its own complications but similar to a DMP.


If you can afford to repay these debts at the full agreed commitment it would be worth doing as it would be viewed more favourably. If you were a lender, who would you rather lend money too, someone who is repaying their debts at a lower amount than agreed or someone paying in full each month?


The only other thing to consider is that while in a DMP the creditors still have the ability to update/add to your credit file each month.
Looking at what you said it sounds like you had some issues years ago, you have got yourself back up to date with your current commitments but you are still paying for your old ones.
When you first started to miss payments but before entering into your DMP, most lenders will have just defaulted your accounts with them, a historical default is not to bad as a fresh one, adverse lenders are generally comfortable with historical defaults satisfied or not. However, some creditors do something different and they keep updating your credit file each month and may be registering a status 6 rather than just registering a default. If that's the case then it reads to a mortgage lender that you are still missing payments even though you are just doing as agreed. Most lenders who are happy with the DMP and historical defaults will want you to have kept up your payments for at least 6 months before applying.


My advice, FIND A BROKER.