Mortgage, DMP and adverse credit

LMJ10

Hello, we are currently trying to seek a mortgage (to move) or remortgage.
I have took advice from a MA but have been reading some criteria on precise mortgages website about DMP’s.
I am with stepchange and never missed a payment but recently there has been reduced payments - on advice of stepchange. Will the reduced payments go against us?
Any advice would be grateful.

Thrugelmir

Reduction in payments wouldn't be helpful. What was the objective in doing so.

LMJ10

Reduced bonus payments at work increased childcare as son started nursery and house repairs needed which meant emergency savings gone.
We don’t have credit cards (obv due to dmp) so we needed a emergency fund to get back up.

I was thinking of coming out the DMP and go alone and direct to the creditors, I’f we applied again in 6months would we even have to declare we were in the DMP?

ACG

Generally speaking lenders do not mind a change in payments providing your payments are up to date.

I do not know Precise' stance as they are generally speaking a lender I try to avoid but what has your broker said? Surely if they have recommended Precise they have done that in the knowledge of the reduced payments? Assuming they only get paid if you get your mrotgage, you would like to think they have checked everything like this.

LMJ10

I haven’t really been through it all with the MA and he hasn’t said Precise all I’ve done is looked at their criteria online - my MA has said any lender would need to see a 12 month statement. So this has sparked my concern with the reduced payments? - no payments fully missed tho at least something paid.
I’m wondering whether to come out of the stepchange plan, and whether I would have to say I was in a DMP plan at all?

Thrugelmir

LMJ10 wrote: »

I haven’t really been through it all with the MA and he hasn’t said Precise all I’ve done is looked at their criteria online - my MA has said any lender would need to see a 12 month statement. So this has sparked my concern with the reduced payments? - no payments fully missed tho at least something paid.
I’m wondering whether to come out of the stepchange plan, and whether I would have to say I was in a DMP plan at all?

Reduced payments may suggest an affordability issue. Remember lenders use what if criteria to assess this.

The debts will need to be declared on the application form. Failure to do so would cause you serious problems. Not just now but in the longer term as well.

ACG

I cant say whether or not you should come out of the DMP, that is for you to decide.

All I can say is yes a 12 months statement is usually needed showing your payments were made. As mentioned, the change in repayments will not be a deal breaker, we have had cases go through with that happening and there were no issues.