Applying for Mortgage following DAS

Jsk88

Looking for any help with this at all please.

16 months ago I entered a debt arrangement scheme in scotland (debt around 28k)Fortunately I am going to be in a position to have this completely paid off in another 22 months.

A year after that I should have enough for a deposit to by my first home.

Does anybody know if the fact this will only be 4 years after entering the DAS will effect this? Would I be turned down on a mortgage due to entering the DAS?

Any info or advice would be much appreciated

Thanks

ACG

Many lenders treat these in the same way as bankruptcy and work from the end date rather than the start date. I can't think of any that will lend 4 years after it started. I can think of some who will with a day or a year out of it, but it won't be normal rates and you will need a large deposit... Maybe 25-30%

Minnie82

Hi, weve finished our DAS and I've been looking into when we could get a mortgage. What I've found is that the DAS will be on your file until 6 years after it was set up at the earliest. We completed ours in September and the 6 year mark was December, it's just fallen off our records this month. From now on theres no trace of it. I'm just waiting for my last defaults to fall off next month then hopefully we will be in a better position to move forward.

Jsk88

Thanks for both replies.

Good to hear that it’s completely off the file when the 6 years have passed.

I have done a bit of reading and it seems mortgage Companies can chose to take it into account even if it’s some years later

CRAIGEMMA

You need to look to a specialist lender.

They will consider someone IN a DAS our out if it has been running for 12 months or more with no missed payments to it.

Examples Precise 80% , Aldermore 95% to name just 2 that jump to mind.

IndyScot2020

Hi thanks for post Jsk88.

Well done on getting debt down and on track to clearing DAS. Agree with other posters there does appear to be a number of specialist lenders out there who will lend to people inside a DAS or just out of a DAS. Usually a higher rate of course than high street - but still good enough. Might be best to wait 6 months after DAS, but each lender criteria is different and there are some out there who may even lend to you while still in the DAS

In 2015, I started my 12 year DAS and managed to exit it after just 4 years after agreeing very favourable settlements and extreme savings. I applied for a mortgage with Aldermore - who gave me an AIP (agreement in priniciple) just 3 months after exiting the DAS ... but unfortunately for me they didn't proceed to make me an offer

I was told while they were ok with my DAS, they weren't happy with the explanation I gave as why the debts arose. I was told though I could re-apply again in 6 months.

I'm in the process of another mortgage application with another specialist lender at present. Might found out in the next few days if they go through with the offer. I'm completely debt free now, but whether in or out of a DAS expect to be ready to answer questions from the lender's underwriter about reasons for debt occurring in first place. Your mortgage adviser should be able to guide you somewhat.

Out of curiosity does your DAS appear on your credit file? Mine does with just one of three credit agencies. The one that does report states that it will be removed from my file in 2021 (exactly 6 years after it started).