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DMP/Credit file/mortgage
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Luciasc
Posts: 20 Forumite
Hi All, We are about to pay off our DMP (which has been running for 10 years!) amongst all other existing debts in preparation for buying a new house.
Many mortgage advisers have told us that we are 99% sure to get a new mortgage based on our current income/expenditure and credit reports if we apply in August when a few other issues drop off. It will be an adverse credit mortgage rate but we are fine with that!
However, we have been told that lenders will ask for the payment history of our DMP. This is where my problem is - due to car break downs, high vet bills and unexpected additional childcare, we've had to make token payments at times.
Now, once the DMP is paid of (which will be in mid July) there will actually be no record of it on our credit files as all debts defaulted over 6 years ago. Does this mean (and I know many people will jump on me for this!) we can avoid declaring we ever had one? We have worked so hard recently to get ourselves on track, I will be gutted if this jeopardises our situation.
Many mortgage advisers have told us that we are 99% sure to get a new mortgage based on our current income/expenditure and credit reports if we apply in August when a few other issues drop off. It will be an adverse credit mortgage rate but we are fine with that!
However, we have been told that lenders will ask for the payment history of our DMP. This is where my problem is - due to car break downs, high vet bills and unexpected additional childcare, we've had to make token payments at times.
Now, once the DMP is paid of (which will be in mid July) there will actually be no record of it on our credit files as all debts defaulted over 6 years ago. Does this mean (and I know many people will jump on me for this!) we can avoid declaring we ever had one? We have worked so hard recently to get ourselves on track, I will be gutted if this jeopardises our situation.
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Comments
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A dmp is an informal solution and, as you say, does not make a particular mark on your file - just the individual defaults.
I guess if you are asked a specific question you should be honest. But unless the lender was actually in the dmp, there's no way they could check.0 -
If you are not asked the question then you face no issues. Other than lenders themselves will retain internal records for far longer than 6 years. You need to choose wisely which lenders you apply to.0
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Thank you. I just hope we can manage to get round it as we've worked our butts off trying to better our situation to get a new mortgage. Will be debt free at long last.0
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If you are applying for a mortgage, make sure you check all 3 of your files to make sure everything else is in order.
The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.ukI'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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