A two default mortgage - Sub prime likely?

Bazillion4

Hi everyone, I posted the below in the ask me anything chat and thought it might be best to open it up. ( I have also sourced some other information)
I have 2 settled defaults on my credit file, £190 for Vodafone mobile (Registered Jan 2016) and Littlewoods for £519 (June 2017), and a previous Debt payment plan starting December 2014.
I do not wish to apply for a mortgage until this DPP clears from the credit file (I believe this is looked at in a similar vain to an IVA)
My question is, with 2 defaults on my credit file, is it more than likely ill be heading down the sub-prime mortgage route or not? Also when the DPP clears in Jan 2021, no provider could see I had it? 
To add more context. My partner has a fair credit score, she hasn't had much credit in the past 
Combined earnings are just over £60,000, and we have a deposit of around £40,000 (£25k savings, 12k help to buy and 3k help to buy), both of us are first time buyers.
I believe the houses we will be looking at will be between £200,000 - £240,000
Any help, guidance would be great.
Thanks

Bazillion4

To add: I have 1 loan, monthly payments of £138. About 2 and a half years to go.
Both have credit cards/overdraft, nil balance on all.

kingstreet

That should be high street doable at that LTV and with adverse that old.

ACG

An IVA is a form of insolvency along the lines of bankruptcy.

An arrangement to pay directly with the creditor is not seen as an IVA so dont worry about that. 
You would possibly be looking at normal rates as kingstreet says, I dont think you would be at the sub prime rates, but if you were they would be the better end. 

Bazillion4

Kingstreet/ACG - Thank you so much for both of your comments, thats given us both some food for thought. 

Pardon my ignorance to it all, if I were to ask what is the best side of the sub prime rate, would you know?

I have a budget in mind of less than 1k per month for the mortgage, considering even the higher value (£240k with £40k deposit) that would be around the 3.5% mark? Am I likely to be there or there abouts?

ACG

In the current climate, probably around the 4% mark. That is probably worst case scenario, there are a few possible options before you start looking at those rates though. 

Bazillion4

Thank you for the response. I am very grateful!