Moving/Paying off DMP/Need a new mortgage!

jackelliot

Hello, lets see how this goes!! We are looking at moving into a new build with the help to buy scheme. I'm aware that I need to sell my home STC before applying for the scheme. My house is ready to go to market but I'm not prepared to put it on until I find a mortgage to cover the rest of what I need to buy the new build. Yesterday, I received the galling news that Aldermore wouldn't approve a DIP (awaiting reasons why). My current situation is as follows......

House value £170k (£131k interest only mortgage outstanding - no missed payments)
£18k on a DMP (mine - would be paid off in full from equity. 1 debt went to default in 2012 and has since been "sold" - no missed payments to DMP)
£5k debt (wives!!!! - would be paid off in full from equity)
£10k "gift" from parents to "assist a move ONLY".

That should leave £26k as deposit.

House looking to purchase £286k
Help to buy (20%) £57k
Deposit £20k (£6k kept for "moving costs")
Mortgage required £209k

Income myself £34k pa
Income wife £13k pa
Other income £1800

Anybody got any help, or advice about where to go next??? Aldermore came to my attention through Seico mortgages. L&C have been "trying to find the right person to contact me" (that was there actual answer to me!!!!) for 4 weeks now!!!

Any help would be greatfully appreciated!!

Thrugelmir

Lenders have a duty to act responsibility. Given the financial picture you paint, a decline is somewhat understandable. The long term DMP being a major concern.

Added to which £6k for moving costs is hopelessly optimistic. Stamp duty on the purchase is £4,300 alone. Then there's selling fees. legal fees for sale and purchase The list goes on.

If your property does not sell for £170k then the already shrunken £20k shrinks even further.

Seems if you need to focus on the reality of now and stop dreaming. Tackle your issues head on. That interest only mortgage is going to need repaying one day. Every month the mountain you are going to have to climb gets that little bit steeper. Nor are interest rates going to remain low indefinately.

haras_nosirrah

Lenders will be thinking `if they can't afford a£130k interest only mortgage (a dmp suggests this has been the case' they can't afford a 210k repayment mortgage. They will also factor in the help to buy loan as a commitment.

Could you not sell and rent, wipe the slate clean and start again when credit scores have recovered and debt free