Mortgage Brokers - Advice?

ILoveChocolateButtons

Hello, I wrote a very long post and then accidently wiped it.....

Would you recommend I:

1. Pay off my DMP as quickly as possible (£17k)
2. Pay off my DMP whilst trying to save a deposit
3. Give up my dreams!

If I thought there was light at the end of the tunnel and I had a hope of a mortage I could do this, and do without things in order to save - but I'm feeling like it's a total pipe dream (Income is £62k) and therefore I have holidays etc to get me through the drudgry!

Any advice very appreciated as I am in limbo!

ACG

1 or 2 for me.
It depends what you want, if you throw your money at a deposit rather than the debt, you get a better chance of a Mortgage, but the debt would be classed as an expense and so may limit what you can lend.

If you throw the money at the debt, you have no (or less) commitments and so may be able to get a larger Mortgage.

Without knowing the details and seeing your credit report, it is is diffuclt to give you an idea or rates, but assuming 3 years with no new credit issues and a 15% deposit decent rates should be achievable, although you may get away with a 5-10% deposit, it all depends on how it appears on your credit report and the finer details.

ILoveChocolateButtons

Hi ACG thank you, credit scores horrendous - me 212 and him 336 with Experian....I wonder if what I need is to find a financial advisor? I am not even sure how to work on our credit files, as in DMP still defaults being added constantly - No CCJ's.

It feels a little helpless and I think I need a chink of hope, if I had that I think I would have the confidence and the determiniation to start digging us out of this hole!

ACG

I am assuming you mean the same commitments are defaulting month after month rather than new commitments being defaulted on?

Dont worry about the score, realistically the lenders you would need are not going to credit score, they will involve an underwriter taking a look at everything, and understanding what happened and why and what will prevent it happening again.

Definitely one for a Mortgage Broker, they will be best placed to get you a result.

Rate wise, they could be relatively normal rates (2%ish) although you may end up stuck with 4-6% for a couple of years. It really does depend on the finer details.

ILoveChocolateButtons

Thank you, so how do I find a mortgage broker!
I am totally clueless, do I look online and find someone?

Is there an approximate up front cost, would help to see whether possible!

ACG

You could ask friends and family, you can look online.
Some brokers will charge upfront fees, personally if I were you I would only be paying on results - ie, no mortgage = no fee.

ILoveChocolateButtons

Thank you