Can I really get a mortgage with a DMP?

Stavrosflatley

Hi everyone,

As the title suggests, I have an active DMP with a value of £4k remaining (down from £40k in 2017 when it started). I expect to be able to pay this off before the end of this month. Once this is complete I will have no debt remaining. I am employed and self-employed with a £33k salary and £40k 18/19 tax return. 
Basically, because of the DMP, I have 5 defaulted accounts on my credit file. Prior to entering the DMP, I had around 6 months of missed or late payments due to my previous employer not paying me for months on end. Since entering into the DMP in 2017 I have not missed or been late with a single payment. 
 I am not completely naive as to think I can get a mortgage with a "normal" lender but when I began the DMP, Stepchange advised it is still possible even with a currently active plan. 
After speaking to a mortgage broker he has advised that there is only 1 lender in the country who will consider my circumstances and they have just declined the application based on my credit score. Once this initial decline happened he said I need to apply for an 8% APR mortgage with the same company which is ridiculous (£1300+ per month). I need to borrow around £170-190k with a deposit of around £80k (around 30%).

Has anyone else had similar problems or have any recommendations of a mortgage advisor who could help? We are desperate to move house as we have a boy & a girl in a tiny terraced house! I really want to make use of the stamp duty holiday!

Note: The mortgage advisor we used was one who came recommended by a large home builder. We are not particularly after a newbuild but just popped in to see if they had anything we liked!

haras_n0sirrah

There are some lenders who will consider with a dmp especially with your deposit level. The rate will depend on the credit file and the rest of the case. I would get a second opinion. I spoke to someone from here who was told by another broker they would only get an 8% interest rate and she has just been approved at 3.89%
If you dont have another broker in mind why not read the boards and pm one of the brokers who post here. We are recognisable by our signatures. We are not allowed to approach posters but they can approach us. If several brokers tell you the same thing then at least you know where you stand and only pay a broker on successful offer especially with adverse cases.

Stavrosflatley

Thanks for the advice, the fee wasn't something I had considered at all! I thought mortgage advisors were paid by the bank via commission, a sort of no win no fee system

haras_n0sirrah

You will be hard pressed to get an adverse case fees free. L&c, habito and the like wont touch them as the amount of work is so much greater than a vanilla high street case that it isnt profitable for them. 

mortgagetakingages

Bluestone or maybe precise comes to mind immediately. You will need a mortgage advisor but be careful as there are many who charge huge fees and may not provide a service to reflect it.

I'm currently going with Bluestone and have paid £495 MA fee and £199 packager and my advisor is incredible! Just an example and it is sometimes a case of you get what you pay for so tred carefully. 

haras_n0sirrah

That is the kind of fee I would expect. £500 to £700 range for adverse (£300-£500 for high street cases