DMP and Mortgage

tequilabird

Hello All,
Currently chipping away at my debts by offering f&f settlements. Only a few left to go and I hope to clear them after payday at the end of this month.

My husband and I have just found out we are expecting #2 so we are going to be looking to move, which obviously means getting another mortgage. We currently have a mortgage and none of my priority debts have ever been affected by my DMP.

Are we going to struggle? I thought about approaching our current lender first, but if that fails, does anyone know of a company who may accept someone with bad credit history?

Tia

glentoran99

my current mortgage lender was great when moving after clearing DMP and still had 3 defaults on file

tequilabird

That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?

National_Debtline

Hi tequilabird


It is really likely your defaults are going to have some impact on you getting a mortgage. It's a good idea to get some advice from a mortgage adviser, particularly one with experience of dealing with people with adverse information on their credit file.


There are people who get mortgages whilst on a DMP so hopefully you'll have some options. The Money Advice Service have some recommended websites to search for an adviser, you'll find those here https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice.


Best wishes


Susie
@natdebtline

glentoran99

tequilabird wrote: »

That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?

Ulster Bank a subsidery of RBS, we had to explain circumstances of getting into debt etc and reasons for moving and the underwriters looked at it all, even let us take negative equity with us

tequilabird

National_Debtline wrote: »

Hi tequilabird


It is really likely your defaults are going to have some impact on you getting a mortgage. It's a good idea to get some advice from a mortgage adviser, particularly one with experience of dealing with people with adverse information on their credit file.


There are people who get mortgages whilst on a DMP so hopefully you'll have some options. The Money Advice Service have some recommended websites to search for an adviser, you'll find those here https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice.


Best wishes


Susie
@natdebtline

Thanks Susie.

Effectively I won't be on a DMP when I'm ready to apply as I'm planning on clearing everything this month. However, I will still have defaults.

tequilabird

glentoran99 wrote: »

Ulster Bank a subsidery of RBS, we had to explain circumstances of getting into debt etc and reasons for moving and the underwriters looked at it all, even let us take negative equity with us

Thanks! Did you get a normal interest rate or did they bump it up to compensate for bad credit?

glentoran99

tequilabird wrote: »

Thanks! Did you get a normal interest rate or did they bump it up to compensate for bad credit?

Normal interest rate, a despite technically getting a 115% mortgage (with taking negative equity with us) we got 90% rates

Red-Squirrel_2

tequilabird wrote: »

That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?

Would waiting 3 years definitely not be an option? After all, there’s the whole of the pregnancy and then the baby should be in your room anyway for 6-12 months but you can definitely stretch that out. What’s your current setup it may be able to hang on until your defaults drop off and you’re in a much better position to move.