Mortgage with DMP - any success?

Twoofus

Hi,

I am after some educated views/advice around a DMP and getting a mortgage.

I have had a mortgage for over 13 years but unfortunately also a DMP for 8 years ☹️

As my DMP has been in place for this amount of time my Credit file is actually very good and completely free from anything including defaults, arrears, and any trace of any of the debt making up the DMP.

I have approx 2 years to go on the DMP with approx 10k outstanding.

My question is what is stopping me remortgaging and buying a new house?

I've had a considerable salary increase in recent years and can afford a much bigger mortgage so would like to move house.

I accept that in some ways this also means I could pay off my DMP quicker, but having lived with it for 8 years and suffered all the consequences on my actions relating to debt
I feel I am entitled to a bit of a break or at least to be treat 'normally'.

If there is nothing on my Credit file to suggest any debt, I've actually had no defaults in over 6 yearsicon so don't have to declare it, and there doesn't seem to be a question on the mortgage application forms that ask if you have a DMP so again I wouldn't be disclosing it.

Any mortgage experts have a view or any advice

Thanks

erin110

DO NOT DO THAT.


The lender can see more than you think. They will also see your monthly payment going out to the DMP when they ask for your bank statements. If you choose to not declare something to the lender and they find out they will decline the mortgage and that may mean you need to go to the next lender who is likely to be more expensive.


There are lenders out there that are happy to take you on with a DMP but thee ones I am aware of are only assessable through a broker. You will need a 10-15% deposit (I would aim for 15% as this will open up more doors). perhaps you could then fix the mortgage for 2 years and review then after you DMP has been fully repaid. Subject to a clear credit file you should then have access to the high-street rates. Speak to an experienced broker!

erin110

Twoofus wrote: »

Hi,

there doesn't seem to be a question on the mortgage application forms that ask if you have a DMP so again I wouldn't be disclosing it.


Thanks

There is probably a question that says have you ever made any late or missed payments. Which you will have done hence the DMP.

Thrugelmir

You'll need to declare the outstanding debt on your application form. The fact that won't be visible on your credit report will obviously raise a red flag. Any attempt to conceal the facts will amount to fraud. Which will have far longer and worse consequences.

In all seriousness you are better off tackling the debt and settling it quicker. Don't kid yourself that anyone owes you a favour. Lenders are in business to make money not win new customers. Financial relationships are built on trust. No trust no relationship.

Twoofus

Hi all, thank you for your views and advice it is appreciated and interesting so I wondered if I could clarify some things from your knowledge.

What is it that lenders can see more than I think, I know they can access my credit files, they are all clean but there is nothing else to see is there?

Again I take the point on bank statements but what if the DMP payment isn't on it?

Could you tell me what lenders you know that will accept someone with a DMP because I cannot find anyone that has put a name forward and my reading suggests that no lender (if they are aware of a DMP) will lend?

To the question about 'ever' had any late or missed payments, yes 8 years ago but credit files only go back 6 and in that period of time I have never had a late or missed payment. Do I have to declare missedlate payments from my entire banking history circa 30 years?

I agree that tackling the debt is important but I have tackled it and continue to do so, I have paid off a number of creditors through the DMP and continue to review and increase payments to those outstanding but if the debt is not on my credit file how can it raise a red flag, it's not there.

I do really appreciate everyone's views, and I accept the debt I have and continue to pay it on agreed terms but should the banks punish me forever for a mistake 8-10 years ago? I would add that these are the same banks that placed excessive charges on me at a time when I was most vulnerable and completely exacerbated the situation contributing to what it is today.

Thanks

erin110

Twoofus wrote: »

What is it that lenders can see more than I think, I know they can access my credit files, they are all clean but there is nothing else to see is there?

I have never worked as an underwriter so not too sure, however, from my experience the lender always finds the things that the client chooses to not declare and it never ends well, also I think Natwest for example will always look back at their internal records, even as long as 20 years ago."

Twoofus wrote: »

Again I take the point on bank statements but what if the DMP payment isn't on it?

It may still show on one of your credit files.

Twoofus wrote: »

Could you tell me what lenders you know that will accept someone with a DMP because I cannot find anyone that has put a name forward and my reading suggests that no lender (if they are aware of a DMP) will lend?

I wouldn't be able to do that on this forum, speak to a broker.

Twoofus wrote: »

To the question about 'ever' had any late or missed payments, yes 8 years ago but credit files only go back 6 and in that period of time I have never had a late or missed payment. Do I have to declare missedlate payments from my entire banking history circa 30 years?

In theory yes however, again speak to a broker and they will determine what is best to do.

Twoofus wrote: »

I agree that tackling the debt is important but I have tackled it and continue to do so, I have paid off a number of creditors through the DMP and continue to review and increase payments to those outstanding but if the debt is not on my credit file how can it raise a red flag, it's not there.

It may flag up it may not but it will still be classed as mortgage fraud.

Twoofus wrote: »

I do really appreciate everyone's views, and I accept the debt I have and continue to pay it on agreed terms but should the banks punish me forever for a mistake 8-10 years ago? I would add that these are the same banks that placed excessive charges on me at a time when I was most vulnerable and completely exacerbated the situation contributing to what it is today.

As above has said, do not think that anyone owes you anything.

Madbags

You say you still have 10k outstanding.


One of the conditions of obtaining a mortgage set by the lender could be that you clear all or most of your debt before they will lend to you irrespective of the DMP.


Presumably you have a deposit saved so you have disposable income. I'd focus more on clearing your debts as soon as you can. If you can do it in less than 2 years then why not.

Westminster

This is one of the places you don't typically see but you can if you pay.

National Hunter

They are experts at detecting mortgage fraud - not something you want to take lightly.

Speak to a broker