On DMP Mortgage chances?

romuk76

Hi and thanks for reading post

I need some advise to help me decide which way to go. After a divorce and 2 kids I have debts, 35k, managed by DMP for the last 6 months. So credit rating non existent.... MY parents are willing to sell their house to settle my debts (will try and negotiate so some will not be full settlements) and use the rest for a deposit to by a house on mortgage where we all live together.

The deposit we are thinking is 40% on a 250k house. My income is 57k. Will I be able to get a mortgage?

I guess the best way is to pay off, wait for the defaults to go and then buy. Then we would have to rent eating away the deposit.

Thanks in advance

chunkytfg

romuk76 wrote: »

Hi and thanks for reading post

I need some advise to help me decide which way to go. After a divorce and 2 kids I have debts, 35k, managed by DMP for the last 6 months. So credit rating non existent.... MY parents are willing to sell their house to settle my debts (will try and negotiate so some will not be full settlements) and use the rest for a deposit to by a house on mortgage where we all live together.

The deposit we are thinking is 40% on a 250k house. My income is 57k. Will I be able to get a mortgage?

I guess the best way is to pay off, wait for the defaults to go and then buy. Then we would have to rent eating away the deposit.

Thanks in advance

Ignoring the actual thread question as i couldn't answer it with any type of actual knowledge, perhaps you could explain the last comment?

Why would the deposit be eaten up by rent? Wouldn't your 'mortgage' payments cover the rent?

Do everything you suggested other than the actual getting a mortgage bit, build up some credit history that isn't negative and then use the deposit to buy?

romuk76

Thanks for responding

you are right the deposit would not be affected. But the rent payments could be the mortgage payments

ACG

The bit that hits me is your parents selling their home to pay off your debts and fund your deposit. I am not here to judge but I cant help thinking that seems a little bit harsh on your parents. Unless they are well and truly loaded and were thinking of downsizing anyway. I just could not picture my mum or dad moving out of their home to help me.

Anyway, to answer your question you may not need to settle the DMP. Once it has been running for 12 months there are lenders who will accept you with a 15% deposit. There will be various ways of doing it and you may find there are ways that mean you can buy without your parents having to sell. But you probably need to sit down with a broker and discuss what is available to you and what yours and your parents preferences are.

Brock_and_Roll

There are other issues here..... might the parents need means-tested care at any point in the next decade or so? Google "deprivation of assets".

Are the parents going to continue to live in the house? Likely to be an issue.

romuk76

Thank you both for your responses.

I know it does not sound right but I have been supporting them for at least 5 years with up to 1k a month. I am not asking anything back but I am getting old at 42 to start again without some help.

They are not well off but without my contribution they would struggle even thought they do not have a mortgage.

Any advise for specialist brokers I can talk to? Your answers do have me thinking that there may be other options.