Mortgage 5 years after Debt Management Plan: My Experiences

Dandytf

Thanks OP
My last default is due to drop late 2021/early 2022 -some time yet.
Think the 6 year since last default could be on time for SC dmp finishing.
Not that I wan't to re mortgage or buy again, though nice to see a positive example and hopefully stop the +6 years from dmp ending scare stories as mser's recently agreed was incorrect info.
At least in my SC plan next three years including 2019 more defaults will continue to drop.

tain

jones101 wrote: »

Interesting post. My remaining defaults (from 2012) are due to drop in the next couple of months. So Im right in thinking there being a chance of getting a mortgage? My gf wants us to get a place and is willing to sell her flat (currently rented out) and use the profit for a healthy deposit. My DMP with Payplan is still running with about 15k left. Wouldnt the broker get suspicious of me being on a DMP when he scrutinises my bank statements and see a little monthly payment to Payplan on there?

From my understanding, while the defaults will have gone, the outstanding debts will still be showing as outstanding. Until they are 'settled', anyone checking your credit file will be able to see the debts, which could impact on your ability to get a mortgage. While payments are still being made to your creditors, it will remain on file. If this is below the agreed minimum, your credit file will show this.

Use the MSE credit file freebie and have a really long look through everything. It should be clear where the debts are still showing as unsettled/outstanding. So even though they can't see the DMP, they can still see outstanding debts and may want to question that.

I recommend checking your credit score before the defaults fall off your file, and immediately after. While a credit score means nothing, it'll be a really good indicator of if your credit file has just massively improved, or if the debts still being outstanding are having an impact. To give you an example - my credit score went from ~600 up to 980 the month after my defaults and settled debts came off my credit file. This gave me confidence that my file was now 'clean'.

Good luck!