Bad credit mortgage? Will i get accepted?

babyd333

Hi im new here and ive been reading and reading and reading until I think im more confused than I was before I started.....so im 30 I have recently left a long term relationship to which I was not on the mortgage for the house however I will be getting some financial gain approx. 10k. I am currently on a DMP and have been for 4 years now. it is due to end august. i have about 3k left on it. i am on an ok salary of approx. 40k a year approx. 2400 basic a month and 3k if i do overtime which i always do. I have credit scores of the following;
Noodle - 459/710
clear score - 258/700
Experian - 357/999

i have had a lot of payday loans in the last 2 years and have an active one which i plan to pay off at the end of the month. I will soon of cleared all my debts to family friends and my dmp in the next 2 months and should be left with approx. 2k disposable income a month. My living situation is far from ideal and i want to get on the property ladder. I know i was stupid with the payday loans but i have learnt my lesson and all i want is a mortgage not bothered about high interest for the first few years i just want to know if im likely to be accepted in the next 3-6 months or am i chasing fresh air?any advice greatly appreciated

ACG

The combination of pay day loans, DMP and your deposit is going to be a little difficult.

How much does £10,000 represent as a percentage of the ideal purchase price?
Why have you been using pay day loans if you are on £2-3k a month? Thats not me being nosey, it is just experience says pay day loans are usually a sign of other issues.

A lot is going to depend on how everything appears on your credit report, not so much the scores, but do your debts show as being in arrears every month? I would personally try and clear the DMP sooner rather than later.

I am making an assumption, but there is a lot to overcome with what I am guessing is a small deposit percentage wise. I think you need to sit down with a broker really and let them see everything. If it does not currently fit, they can at least give you some guidance. I would be 50/50 at the minute, but if it can not currently be placed, you are probably not a million miles off.

babyd333

hi thanks for the reply, i currently pay out to friends and family money i have borrowed and that totals nearly1.2k a month but that ceases in april or sooner when i get this payout. i didn't know if it was going to be better to pay the dmp and all other debts off then have the 2k to save a month or pay the debts that aren't the dmp keep the dmp and add the remaining money i have left to my deposit? does that make sense? it was just the payday loans i have been reading about everyone seems to think its a massive no go for a mortgage application for at least 12 months and i really cant wait that long

babyd333

sorry also the 10k will be representing approx. 10% of the property but i could potentially get another 5k together if i borrowed it off family, my debts do not show as arrears i have 1 arrear from 2015 no other missed payments just arrangements to pay from my dmp