First time buyers with dro on credit file

zoenicolesmith

Hello, Me and my fianc! are currently saving to buy our first home together, We've managed to save 5K for the deposit and we are currently dealing with Santander but my fianc! had a DRO in the past and it's still on his credit file and will be now for another 2 years due to them staying for 6 years. Santander have said we might be able to appeal against it and turn a blind eye to it but we would need 10% but it's not looking good at the moment. Is there any point in us trying anymore banks or should we just wait another 2 years and rent while we continue to save. We are complete stuck on what to do now, we don't want to keep going from bank to bank in case all these NO get but on our credit score. Were not actually applying for any mortgages were just trying to get a decision in principle first. If anyone has any advice please share it would really appreciated. Thank you!

National_Debtline

Hi there and welcome to MSE,


A DRO will show for 6 years from the start date. The older the information gets on your credit file the less impact it normally has, however, a DRO is quite negative (from a credit file perspective) because it is a form of insolvency.

Searches will stay on your file for 12months, and if you have several searches and no credit awarded this can also be very damaging to your credit file. So you should be careful about how many mortgage applications you are making, especially if you haven't got all of your deposit together yet (you may be a bit premature).


Ensure that you have done as much as possible to make sure everything else is as appealing as possible. For example, make sure you are on the electoral role, not financial associated with anyone you shouldn't be, making all payments for current credit on time etc. Please be aware that a lack of history can make getting future credit as difficult as bad history. So if your partner has nothing other than the DRO on their file they should look at getting a very small credit card and use it a small amount each month and clear it in full. Good luck,


Laura
@natdebtline

sourcrates

Time, they say is a great healer, the same applies to your credit file.

Once the DRO has gone, you stand a much better chance of been accepted for a mortgage, with it being a form of insolvency, it might be best to wait a while, and keep renting for the time being.

alltaken

Nationwide
YBS/Clydesdale

If you can't raise the 10% or are unwilling to appeal Santander then you have every chance of being accepted on a joint application with the above lenders. They lend after 36 months discharge, and MSE has some great success stories from former insolvent applicants that frequent these boards.

Suits2017

Would this be the same situation for a Trust deed in Scotland? I am 3 years post discharged and it was completed in 2013. Nationwide are a lender for help to buy but when i read up on their criteria it said they wouldn't accept IVA/Insolvency. Is it best to speak to them direct with some history ?

sultanabran

Assuming a Trust Deed is treated the same as an IVA for credit scoring then judging by Nationwides lending criteria, you would be considered.

See the credit scoring section at http://www.nationwide-intermediary.co.uk/lendingcriteria/general/general