Mortgage with a Debt Management Plan

Cakeguts

Linzi155 wrote: »

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.

No one can tell exactly what is in your mind when you post. To people reading it your OP looked like someone who had a lot of debt, got some money and then spent it on a holiday. You didn't say how much money you got and you didn't say that it was a short holiday for a couple of days. (I assume you mean days.)

The point is that if you could save enough money for a deposit on a house and moving costs you could also pay off the debts that you still have. If you did this you wouldn't have any debt and would be considered for a mortgage. So the obvious thing to do is to save a lot of money and pay off the debt because you would have to save a lot of money for the deposit anyway. The deposit is usually 10% of the purchase price of a house and it doesn't sound as if you have got that anyway. No mortgage company is going to lend you 100% of the purchase price. As well as the deposit you need to have saved money for the costs of buying a house which could easily run into £1000s.

I think what is confusing everyone is that you say that you would like to get a mortgage but it doesn't sound as if you have done any saving towards the deposit for a house which is possibly because you are having to use any money that you have spare to pay off your debts.

So although paying an actual mortgage on a bigger house might be cheaper than the rent the costs of buying it including the deposit and money for the solicitors and surveys and then owning at the cost of repairs while still paying off the debts might mean that you just can't afford it yet.

The problem is that the mortgage companies are not interested in how you got into debt what they are interested is the risk that you pose to their loan. At the moment they may feel that the risk is high because you have debts and this may not be the debts themselves but the fact that they may feel that you will have affordability issues because of having to pay so much towards the debts.

The obvious solution for you is to do some serious saving and pay off the debts.

Cheeky_Monkey

Yet another poster having a strop because they're being told what they don't want to hear

Linzi155

I am quite capable of listening to constructive opinions I just won’t sit back and take a battering when frankly I don’t think it was called for. I’m only trying to look at solutions and I thought by asking on here it might shade some light on an area I’m not familiar with. I’ve taken board about the idea of ensuring I have deposit, lawyers fees emergency funds etc on top of the day to day costs plus the mortgage once the DMP has been cleared. Since last night, I have looked at budget to see where I can save more & get it cleared quicker. So I appreciate that. I’m not having a strop - I really don’t know what’s been said to cause your reaction to be the way it is.

Cheeky_Monkey

Linzi155 wrote: »

I am quite capable of listening to constructive opinions I just won’t sit back and take a battering when frankly I don’t think it was called for. I’m only trying to look at solutions and I thought by asking on here it might shade some light on an area I’m not familiar with. I’ve taken board about the idea of ensuring I have deposit, lawyers fees emergency funds etc on top of the day to day costs plus the mortgage once the DMP has been cleared. Since last night, I have looked at budget to see where I can save more & get it cleared quicker. So I appreciate that. I’m not having a strop - I really don’t know what’s been said to cause your reaction to be the way it is.

Thought you weren't going to post again :rotfl:

You have not said, until now, that you intended to pay off your DMP first before going down the route of trying to get a mortgage to buy a house. Had you bothered to do so, you would've got different replies.

You gave the distinct impression that you wanted to buy a house now regardless of all the debt you currently have and seemed to think that was perfectly acceptable in a 'I want it and I want it now' type of way.

I also don't believe for a minute that the rent would be double for a bigger house. If you're currently in a 2 bed for, let's say, £500 pm, it's not going to cost £1k pm for a 3 bed.

Lioness_Twinkletoes

Linzi155 wrote: »

I am quite capable of listening to constructive opinions I just won’t sit back and take a battering when frankly I don’t think it was called for.

Twice you've reacted badly and twice I've looked back over the thread looking for the posts that caused offence.

I can't find any, so you must be a much gentler soul than me! Perhaps public forums aren't for you?

Linzi155

Totally agree - I’m too hot headed. I need to work on that! I’ve worked so hard to get to where I am, as I believe all you guys have as well. The rent I pay is cheap in comparison to others in the area because it’s in need of a lot of updating (central heating/kitchen/bathroom) but they won’t therefore rent is cheap. It was the best I could afford at the time hence why i would be looking at double what I am paying now. It was only when I started to read the posts that it made me think “ok get a grip - one step at a time! Do another budget, Clear the DMP, find a way to save for house and take it from there” Think I’m best just sticking to reading and not talking ��.

thelem

Please don't be scared of posting, it's a great way to get relevant advice to your situation. You've clearly learnt a lot from this thread, so it's been useful to you even if it was a bit painful.

No one else on here knows your full circumstances, so we can only go on what has been posted. It's also very easy to be blunt when you're behind a keyboard, particularly if you think it's a stupid question. Try not to take it personally.