Have a DMP and a FTB

Laurascott

Hi!
Looking for advice. I entered into a Debt management plan in 2003 with 3 debts. Two of the debts are fine on my credit report. However the other is showing in default as I am not making the original contractual agreement, even thou they agreed to take a reduced amount from me and I have never failed to make a payment. Me and my boyfriend are looking at a new build apartment with a 5% deposit and a 20% help to buy equity loan . A really uninterested mortgage advisor said I will never get a mortgage. I was wondering if anyone has had a similar experience and could help. Many thanks

kingstreet

2003 and still visible on your credit file?

feekerry

I recently got a mortgage on a dmp. Any defaults drop off after 6 years but arrangement to pay markers stay on for 6 years from when you make the last payment so the one that still shows is probably not a default but marked as ap. your dmp payments will also show on your bank statements etc. There are lenders that will consider a dmp but depends how it all looks on your credit files and you will need an adverse broker
Best of luck

Thrugelmir

Laurascott wrote: »

Hi!
Looking for advice. I entered into a Debt management plan in 2003 with 3 debts.

Settle the DMP as soon as possible. Treating the DMP is doing you no favours. As reflects badly on you as a potential borrower, i.e. how you manage your personal finacial affairs. Lenders only underwrite business that meets their criteria. They have no need to chase business at any cost.

Laurascott

Sorry I meant 2013

Laurascott

Hi!!
Looking for advice. I entered into a Debt management plan in 2013 with 3 debts. Two of the debts are fine on my credit report. However the other is showing in default as I am not making the original contractual agreement, even thou they agreed to take a reduced amount from me and I have never failed to make a payment. Me and my boyfriend are looking at a new build apartment with a 5% deposit and a 20% help to buy equity loan . A really uninterested mortgage advisor said I will never get a mortgage. I was wondering if anyone has had a similar experience and could help. Many thanks

Thrugelmir

Same principle applies. Settle the debts and reset your credit history.
Then move forward from there.

You'll struggle to find lenders who will advance you money when you haven't repaid what you've previously borrowed.

Onus is on you. Time does heal. So don't give up hope.

kingstreet

If your DMP is being well-managed and you can show the latest twelve months payments are being made on time, there is a lender which will accept you on the HTB Equity Loan scheme with 5% deposit and a 75% mortgage.

Speak to an experienced broker and if they scoff, speak to one experienced in newbuild.

Expect a rate of 3.7% to 4.0% though.

System

where did you find the adverse broker? all the brokers on here are less than helpful to say the least!

Laurascott

kingstreet wrote: »

If your DMP is being well-managed and you can show the latest twelve months payments are being made on time, there is a lender which will accept you on the HTB Equity Loan scheme with 5% deposit and a 75% mortgage.

Speak to an experienced broker and if they scoff, speak to one experienced in newbuild.

Expect a rate of 3.7% to 4.0% though.

Do you know the name of the lender

juniordoc

Is it possible that you could start paying the amount stated in the original contracted agreement? Clearing your debt is your quickest way to getting approved for a mortgage in the future so that should be your number 1 priority.