Shared Ownership Mortgage/Previous DMP

crazyfrog2018

Hi,

I'm looking at purchasing a shared ownership property later on in the year (hopefully!) but am not sure which direction to take with mortgage lenders.

I had a DMP which finished 3 years ago this month. My current credit score is 997/999. Am I likely to be accepted by many lenders? I've found a couple of "bad credit" mortgage brokers, but am slightly wary and would prefer to avoid this if possible. Has anyone had any experience of this?

Thank you in advance! :beer:

crazyfrog2018

Sorry I forgot to mention, pre-DMP I had fallen into a bit of a vicious cycle and have a few payday loans on my credi5 history, I'm sure they may present a problem. Thanks.

csgohan4

you need to utilise the adverse credit brokers, they won't be cheap though and ultimately nothing stopping you approaching lenders, but you will not know which lender will be suitable for you.


Are you wary due the cost? if you are, can you really afford a mortgage, your largest debt you will likely have?

haras_nosirrah

I am a mortgage broker specialising in shared ownership for the last 10 yrs

Depending on the age of the defaults and whether they have been cleared and how long ago there may be some options for you

One thing to be aware of is some housing associations have a max interest rate they will allow and won't accept some of the more extreme adverse lenders.

crazyfrog2018

It's not the cost of the mortgage that worries me, I suppose I'd just prefer to go with a company that I had heard of before, as you say it's the biggest debt I'll ever have and I worry slightly about how reputable some may be, but I'll do some research beforehand. I can afford increased payments for the first two/three years until the DMP has come off my credit report, then will be able to go through mainstream lender if needs be.

That's good to know about the maximum interest rate, thank you. I think when the time comes I'll approach a mainstream broker and see what they think, I can always go to a adverse risk broker after if needs be.