Getting a loan after DMP help.

Melanieall

Hello, first ever post 😬

We finished a DMP in April clearing just over £34,000 over the last 5 years. We have some essential work we need to carry out on our home, new boiler, front door, bathroom etc etc. We were hoping when our DMP finished we could go to our mortgage provider (Narionwide) and add to our mortgage as we have quite a bit of equity. Unfortunately our request was flatly refused and I have since been told that if you have a DMP showing up on your credit history, even if it is resolved, they will not lend us more. The DMP will not be removed from our credit history for another 2 years and we cannot wait that long. The only option I can seem to find for borrowing is a secured loan which hopefully I can pay off when our credit file is cleared but I am very worried about doing this even though the one I have found through Fluid Money has no early repayment charge. Has anyone else found themselves in this position, any advice would be helpful, thank you.m

fatbelly

Well done on clearing 34k of non-priority debt.

Please be very careful about getting back into more dangerous priority debt.

It is true that defaults registered as part of the process stay on file for six years. I presume that is why you say your file will clear in 2 years (six years from when you started your dmp, approximately). There are AP markers but those entries only disappear 6 years from when the debt is settled, so it sounds like you have the former, which is good.

For now you need to start building your credit history. Martin has an article here

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

You will now have significant surplus money each month. You don't have to do everything at once. Why not do things on a month-by-month basis?

Melanieall

Thanks for your reply. Our defaults end in 2019, I have 2, my Husband has 5. What are AP markers?

Thanks

sourcrates

Melanieall wrote: »

Thanks for your reply. Our defaults end in 2019, I have 2, my Husband has 5. What are AP markers?

Thanks

AP markers mean "arrangement to pay", sometimes when an account dosent default, the creditor adds "AP" markers instead.

These are worse than defaults, as they stay on your file 6 years after the debt is repaid.

Saving, and doing the work in stages is a good choice, a quality PVCU front door can be bought off the net, for less than £200, they are in most cases a doddle to fit yourself with only basic DIY knowledge, (plenty of help vids on you-tube).

Bathroom again, i did mine with end of range stuff from B&Q for about £250.

The boiler, of course may need an expert, is it gas ? if so that will be your biggest expense, but always buy cheap off the net, from a reputable seller obviously, then just get some one to fit it, if its an oil boiler, then they are easy to work on, usually you just need to replace the burner, around £200 again dependent on the size you require.

There is no need to spend thousands on these things.

January2015

I wouldn't take on more debt after clearing a DMP - which you deserve great credit for

Look at those essential jobs and break them down into order of what needs doing first, second, third etc. etc. Build a plan to work through them one by one. For example - your front door obviously still works and does the job - that's a nice to have rather than essential (unless it's falling off the hinges, rotten with wood worm or something similar).

Take pride in getting through the list of "to do's" by using what was your DMP payment each month and paying for these jobs with your own, rather than borrowed, money.

I definitely would never consider taking out a secured loan for these types of repairs and maintenance. Been there, done that, and have got the extortionate rate secured loan round my neck to prove it.

Melanieall

Thanks for the advice, sorry if this is a daft question but how would I know if there are AP on my credit file? I cannot see the words 'arrangement to pay' or AP?

fatbelly

Melanieall wrote: »

Thanks for the advice, sorry if this is a daft question but how would I know if there are AP on my credit file? I cannot see the words 'arrangement to pay' or AP?

Then you haven't got one.

It sounds like your creditors issued defaults, so you did well.

Melanieall

I hope you are right but I'm a bit concerned about my old Next account, it went into a DMP in 2013 but it has never shown as a defaulted account, It is the only account on my credit file that mentions it was in a debt management plan, it also states it joined the DMP in 2016 when it actually joined in 2013 and I'm wondering if that means it will be there until 2022 rather than when in 2019 which would have been 6 years after it originally defaulted.

fatbelly

Is that Experian?

Melanieall

Hi,

Yes experian.

fatbelly

Sounds like that one is going to be there till 6 years after it was settled.

I've never seen that phrase on an Experian report