Can't get shared ownership mortgage yet cleared DMP off 4 months ago.

Simple_Geek

So I need a little advice on what to do. For the past few months since clearing off my DMP I've been looking at properties, specifically ones under shared ownership as going for a full mortgage property I wouldn't be able to afford. And after a good few months of saving, managed to get a good few grand together to hopefully start searching and get the wheels in motion.

But earlier today spoke to First Choice Finance about a mortgage enquiry on a property I'd seen. They said that with me having previously been on one and even though it had only been 4-5 months since it was cleared, there was nothing really they could do and wouldn't take it any further. And the advice that I was given was to get more money together and try again on a full mortgage in about 12 months or so.

The thing is my credit rating on experian is excellent and clearscore is "scoring high" so I'm at a complete loss at what to do.

Only options I have are either to rent, not my overall goal, basically dead money. Or try and put more money put aside and try on a 100% next year. But the only risk in that is possibly being turned down due to that DMP again.

Any advice on this would be much appreciated.

haras_nosirrah

I am a shared ownership specialist who is on the panel for a couple of housing associations. If you can get a 10% deposit there is a lender who will consider a debt management plan settled for 6 months

Simple_Geek

And can I ask if I were to be able to get that 10%, what sort of rates would I get on a mortgage?

haras_nosirrah

I am coming up with 3.29%

redman1989

Any adverse type lenders will be always have a higher rate.

I'm in the process no with on a 10% LTV full mortgage with my wife. I have 5 defaults from 4+ years ago and had no issues since and my wife has excellent but we are getting pushed to a 4.29% a month.

Just got to keep trucking on and trying as time progresses you will be more likely to secure an offer.

ACG

I would speak to Horas on this sort of thing.
We specialise in adverse (but we would not be able to help as we do not do shared ownership), we regularly speak to people who have been turned down by other brokers.

One broker saying something can not be done does not mean it can not be done. If you were looking at a "normal" purchase now, I would expect to be able to get a Mortgage. So if you wait, it should be possible, if you do it now with the right people it appears to be possible.

Sometimes it is just a case of speaking to the right person to get things done.

haras_nosirrah

redman1989 wrote: »

Any adverse type lenders will be always have a higher rate.

I'm in the process no with on a 10% LTV full mortgage with my wife. I have 5 defaults from 4+ years ago and had no issues since and my wife has excellent but we are getting pushed to a 4.29% a month.

Just got to keep trucking on and trying as time progresses you will be more likely to secure an offer.

There are high street lenders who ignore satisfied defaults over 3 yrs old so you may be able to do better than that. The one I am thinking of has rates at 2.33% for a 2 yr fix at 90%

ACG

haras_nosirrah wrote: »

There are high street lenders who ignore satisfied defaults over 3 yrs old so you may be able to do better than that. The one I am thinking of has rates at 2.33% for a 2 yr fix at 90%

Pretty sure I know who you mean, but Ignore does not mean they do not form part of the score of the application.

5 defaults at 90% LTV is going to be a tough ask for a normal credit scoring lender. Not impossible but I would not be holding my breath.

haras_nosirrah

ACG wrote: »

Pretty sure I know who you mean, but Ignore does not mean they do not form part of the score of the application.

5 defaults at 90% LTV is going to be a tough ask for a normal credit scoring lender. Not impossible but I would not be holding my breath.

I got one through recently with them with a similar number of defaults where even the likes of halifax said no

It was at 85% though so possibly could be optimistic but I would say worth investigating if conduct has been good in the meantime and it was that long ago

Jamie_Leo

Hi,

I must say it’s good to hear that there are lenders who will consider people 6 months after a dmp. I finished mine almost 2 months ago so would really appreciate some more info on that!

Thanks, Jamie