Mortgage with a Debt Management Plan

Doozergirl

ACG wrote: »

You could have someone with all the empathy in the world, which is great. But it does not answer the question or get them a Mortgage. The only way our OP is going to know if they can get a Mortgage is by speaking to a broker as the devil is in the detail for something like this.

It will depend on when the DMP was started, size of deposit, how it all appears on the credit report etc etc. But someone experienced is going to need to look at the credit report.

And a broker has been advised but a lot of the 'advice' here is judgement. They will get the same practical advice on the DFW board, but also (more) answers from people who have been in the same situation, rather than judgement on whether or not the OP is effectively grown up enough to own a house. People fall into debt for many reasons and getting out of it does not have to be an exercise in self-flagellation.

Brock_and_Roll

Kent77 wrote: »

I have a DMP with around £7k left to repay.

I received a full mortgage offer from Halifax last week on a rate of 3% fixed, 85% LTV.

Get yourself a good broker- it is far from impossible.

Well done, that's a result!


It should be no concern to you, however, a high street bank lending that LTV at that rate to someone on a current DMP i.e. currently in default on their financial obligations is a bit of a sell signal to me as a seasoned banker that there might be trouble ahead again for the banks!

glentoran99

15% deposit surely more than the 7k you owe, Shocked they didn't insist it was paid off,

glentoran99

Brock_and_Roll wrote: »

Well done, that's a result!


It should be no concern to you, however, a high street bank lending that LTV at that rate to someone on a current DMP i.e. currently in default on their financial obligations is a bit of a sell signal to me as a seasoned banker that there might be trouble ahead again for the banks!

Better not mention the 115% mortgage I got just over a year ago not long out of a DMP

Kent77

glentoran99 wrote: »

15% deposit surely more than the 7k you owe, Shocked they didn't insist it was paid off,

I should clarify that the deposit was a gift on the condition it is used as a mortgage deposit and not debt repayment or frivolity.

NaughtiusMaximus

Kent77 wrote: »

I should clarify that the deposit was a gift on the condition it is used as a mortgage deposit and not debt repayment or frivolity.

A difficult subject to broach I know but in your position I would ask the kind person gifting you the money if they'd be a little flexible on that, clearing a DMP certainly isn't frivolous expenditure and if you could manage in your current house until the summer it would give you a lot more options.

I paid off my DMP in May. When our mortgage broker did all her checks in early July she could only find one lender willing to lend to us who charged an exhorbitant interest rate. We instead waited until the 6 month anniversary of clearing the DMP last month and have now received a DIP from a high street lender at a competitive interest rate.

EDIT - ignore this, didn't notice your earlier email that said you'd already been accepted.

Linzi155

Wow!! Didn’t expect that kind of response! To clarify, the little money (£1200 to be exact!) I got was used to pay off debts that I had that wasn’t included in the DMP, incurred due to leaving my home with nothing apart from the clothes on my back. I had two kids to provide for and at the time in part time employment that I managed to get as part of my “exit” strategy. As soon as I could I started paying these off as they were taking out in my parents name obviously I couldn’t get credit. The holiday was a thank you and well done treat for my kids who have been to hell and back with the situation. I felt they deserved something special. It wasn’t a luxury foreign holiday. It was a couple of hours away self catering. I contacted my DMP company who advised because the amount I had received was relatively low there was no point in declaring it. Wether this was correct or sound advice I’m sure you will tell me. I have worked my back side off to be debt free apart from the DMP. I now have a full time job that I have been in for 4 years, company car and a house fully furnished and my kids don’t go without. The debt that was run up previously was because my ex wouldn’t give me money to run the house, I was forced to give up my job and I soon became trapped in an emotionally abusive and controlling environment. Yes. I could rent a bigger house for approx double what I am paying just now and rightly or wrongly feel that if I can prove I can afford that then why can’t I consider a mortgage. For a first time poster, that admires what Martin Lewis does, I’m shocked at the judgment and harshness of your responses. However, to the few that came across as supportive, thank you for your advice and guidence. I had no idea where to post or ask my question but I won’t do so again. I wish you all well and success in your life’s.

Doozergirl

Please do post. The Debt Free Wannabe board would be a haven full of support and advice without judgement.

When you say DMP company, who is managing that for you? I hope you’re not using a company that charges as the likes of Stepchange don’t charge a penny and so all your payments go towards the debt. No point wasting money! There is a DMP specific thread on DFW too.

Linzi155

It is with Stepchange. I found them very helpful when I was in an extremely scary position and not in a good mental state. A lot better now (touch wood) and trying not to be embarrassed or scared of my decisions is an ongoing battle. Thanks for the encouragement. I’ll have a look at your suggestion but won’t post.

Doozergirl

What other people think doesn’t matter at all. There but for the grace of god and all that.

I’m sure once you’ve read through a bit you might feel braver there. Best of luck to you