HTB mortgage application with old/settled defaults/DMP

JoChu

Hi Everyone,

I was wondering whether I could ask for your opinion on a couple of matters.

I set up a DMP with Payplan in November 2009, in order to make repaying my debts more manageable (and wouldn’t have done so in retrospect!). I didn’t miss any payments and fully settled the amount of £25 000 I owed at the end of February 2015. Two creditors added three defaults, which have since dropped off (a year ago I successfully requested that the default dates be made earlier, as they were added at a later date than the start of the DMP). On my Experian credit report, Santander shows some late payments 37 – 72 months ago, green for the rest, marked as ‘DMP’ only for the last three months of the DMP, and showing settled. Equifax and Callcredit shows the same, and, in addition, ‘AP’ for Barclaycard for the whole period until it was fully settled in February 2015, and ‘DMP’ for the last three months before full settlement for Idem (MBNA), rest green. I have a credit card which is fully paid at the end of every month, no other debt, no dependents and a decent income. I know it means nothing, but all three reports say my credit score is excellent.

I am extremely keen to finally get on the property ladder after working tirelessly to repair my credit record for the last 7.5 years. I have reserved a London Help To Buy property, got the green light to go ahead, and the developer’s mortgage adviser applied for a mortgage on my behalf. He knows my circumstances, and said we should be fine, but I’m not so sure! He was happy to only look at my Experian credit report (I did offer to send all three), which looks the best of the three, as only the settled Santander DMP shows, and neither the settled Barclaycard AP nor the settled Idem DMP, which comes up on the other two. He applied for a mortgage with NatWest, who was one of the creditors whom applied a default after having arranged the DMP (the amount was about £4500 (credit card and current account), but fully settled in February 2015, as mentioned before). The reason he used them, is because they are prepared to lend the biggest income multiple (I’m applying on my own). Needless to say, they will check their internal records.

My application was made a week ago, and I can’t detect any soft or hard credit searches on my credit files yet, even though the mortgage adviser said that the mortgage in principle wasn’t declined – it was referred. The narrative mentioned something to do with my address, when he applied.

My questions are:
In your opinion, is there any chance at all that my application might be approved, seeing that I had a fully settled default with this high street lender more than 6 years ago?

Also, I have been out out of the DMP for 26 months, and not the three years that some say you have to wait. Will this necessarily be an issue?

I know I shouldn’t make several applications, but I guess trying a good adverse credit mortgage adviser remains an option, if this doesn’t work out?

A week after my full application, I am a nervous wreck. In some ways it would have been easier if I were just declined at the initial stage, but I guess I can only wait and see now!

Any advice would be appreciated.

kellie_appleby

Hiya, did you find out if your mortgage app went through ?