Mortgage options while in DMP, maybe help to buy?

saltysuds

hi,

Just here looking for advice or any suggestions 

We are outgrowing our home and it maybe the case that we just have to stick it out.

Currently have a mortgage with Halifax in my sole name, balance of circa £108k. No mortgage payments ever missed. Property value around £140k

However approx 16 months ago I entered into a DMP due to some mounting CC debts, I've been paying the agreed amount for this time (except a 3 months agreed break due to being furlough), accruing 6 defaults in the process, no CCJ.

Outstanding balance is around 21k

Would we have any options available to us to be able to move? Are there Help to buy lenders who would take on someone in a dmp so we could bump our deposit and therefore have a better LTV with our contributions?

As mentioned the mortgage is currently in my name, we could joint apply on a new mortgage if that would somehow help.

Earnings are
Myself - £46k
Wife - £29k
Properties that would suit would be around £180k
Let me know if need further information 

Thanks for taking the time to read

csgohan4

I would consider getting a broker specialising in adverse credit as you are not a run of the mill case. That debt may affect your affordability together with the DMP

generally you can only borrow x4.5 of your gross salary  not including debt. Have you tried some calculators to see how much you can borrow?

ACG

There are lenders out there for HTB and non HTB who will conisder DMPs 16 months old. 
Rate wise you are probably looking at around the 4% mark, but could be more depending on how your credit report looks. One for a broker though as your options are going to be quite limited due to everything being quite recent. 

haras_n0sirrah

As acg says there are lenders who will consider this subject to the finer details (credit report viewing essential). You need a broker (and not a conveyor broker like london and country but a proper broker who will have time for your case) If you dont have a broker some of us who post here are independent brokers and we are identifiable by our signatures. We are not allowed to approach posters but most of us are happy to respond to pm's asking for help. 

saltysuds

Thanks guys, what are they looking for on credit reports? Obviously the defaults show, but nothing else other than normal running items.

Although I appreciate you're not allowed to tout for business are either of you advisors that posted whole or market and deal with adverse credit? So I can contact the correct person. Thanks

csgohan4 said:

I would consider getting a broker specialising in adverse credit as you are not a run of the mill case. That debt may affect your affordability together with the DMP

generally you can only borrow x4.5 of your gross salary  not including debt. Have you tried some calculators to see how much you can borrow?

Level of borrowing at base level would be 3.9x on my own, or about 2.4x joint

haras_n0sirrah

Both myself and ACG are independent and whole of market brokers. 

ACG

90% of what we do is adverse, but I dont do HTB so not really one for us if the HTB element is involved. 

Credit reports, it depends on the type of lender you go to. If you go to a manual underwriting lender, they are trying to get an understanding of the situation and use the credit report to back up your version of events. They are also using it to check you fit criteria or if you are outside, would they be prepared to make an exception and bend the rules a little... This doesnt really sound like the type of lender you will be looking at due to how recent the DMP is and the HTB element. 

There are other lenders whose criteria is black and white, you either fit it or you dont. So they will be using your credit report to just check you fit criteria. I suspect this is the type of lender you will end up using.