Mortgage and DRO

debtfreeteacher90

Hi, 
I was discharged from a DRO order in October 2015, due to drop off my credit report October 2021. My partner and I have started to discuss buying a house in the near future. We are both 30 this year and are keen to buy and feel a bit more settled. We have a £40000 deposit and are looking at houses in the £150000-160000 range. I am a teacher on a stable income of over £30k and my partner is self employed making around £25-30k a year.  He has no outstanding loans or credit card balances and I have an outstanding car loan of £1500. Would we have any chance of being accepted for a mortgage this year? Or would it be best for us to wait 18 months until the DRO has left my credit report? Has anyone had any luck with mainstream lenders like Nationwide?  I’m guessing we would have to pay more regarding interest fees? I keep getting conflicting answers online regarding the interest rate. Presently, our  deposit would be  20 percent. 

Any advice would be appreciated!

mwarby

I'd suggest you consult a mortgage broker, your DRO will rule out certain lenders some for a a few more years some forever. Given the current financial crisis many lenders will also be more risk averse than they were say a year ago. Generally you'd get the same rate as anyone else, the  biggest factor is the LTV of your loan

liggerz87

As mwbry said also I read this earlier https://amp.theguardian.com/business/2020/jun/17/nationwide-triples-minimum-deposit-for-uk-first-time-buyers

fatbelly

debtfreeteacher90 said:

Hi, 
I was discharged from a DRO order in October 2015, due to drop off my credit report October 2021. My partner and I have started to discuss buying a house in the near future. We are both 30 this year and are keen to buy and feel a bit more settled. We have a £40000 deposit and are looking at houses in the £150000-160000 range. I am a teacher on a stable income of over £30k and my partner is self employed making around £25-30k a year.  He has no outstanding loans or credit card balances and I have an outstanding car loan of £1500. Would we have any chance of being accepted for a mortgage this year? Or would it be best for us to wait 18 months until the DRO has left my credit report? Has anyone had any luck with mainstream lenders like Nationwide?  I’m guessing we would have to pay more regarding interest fees? I keep getting conflicting answers online regarding the interest rate. Presently, our  deposit would be  20 percent. 

Any advice would be appreciated!

If you were discharged in Oct 2015, that means your order was made in 2014 and drops off in Oct  2020.