DRO and Getting a Mortgage

sezie

3 years ago I had a debt relief order go through. I'm now in a much better place financially, I have savings and regular income. My partner and I want to buy a house together in around a years time. He has good credit and we both have around £5000 each at the moment to put into a new buyer ISA. Am I going to ruin the chances of us being able to get a mortgage because of my past?

National_Debtline

Hi Sezie

There is a specific board for DRO queries which you will find more useful to post in but in response to your query - the DRO will stay on your credit report for 6 years and usually this will go against you when applying for a mortgage. I’d advise you to speak to a mortgage broker who will have more specialist knowledge of which lenders may consider accepting you. Be aware that if you can get a mortgage the terms are likely to be less favourable because of the DRO.

Once the DRO is removed from your credit report things should improve, although a mortgage application could still ask if you have ever had a DRO and you will still have to declare it. It’s possible you could be better off to wait another 3 years and use that time to save a much bigger deposit. Good luck with the mortgage.


Susie
@natdebtline

ACG

Your not going to ruin the chances of getting a Mortgage, but unless you have been discharged for 3 years, then you are going to need a bigger deposit and pay higher rates than normal.

If you have been discharged for 3 years, there are lenders who will consider you at normal rates but only a handful.