Long DMP affect on future Mortgage

Crazycat89

Good Afternoon,

I was hoping for some advise from either those with experience or a MB on the forum. Apologies this is a bit of a “future” scenario but I would just like to know where I stand. 

Basically I am now 2 & 1/2 years into my DMP and looking forward to when the defaults come off my Credit File 🥳 (after 6 years). After this time myself and my partner would like to look at moving, however even though the defaults will have fallen off, due to the amount and payment of my DMP this will still be in payment.

I know I would need to invest in the help of a specialist broker however just wondered how much does just the DMP have and affect future mortgage applications.

We would probably be looking at a mortgage of around £160k, 20% deposit paid and a salary of around £50k.

Thanks in advance! 👍🏼

Thrugelmir

Crazycat89 said:

 payment of my DMP this will still be in payment.

Doesn't look good that you've put saving before repaying old creditors. Treating a DMP as an interest free loan is let's say generally frowned upon. 

Crazycat89

Thrugelmir said:

Doesn't look good that you've put saving before repaying old creditors. Treating a DMP as an interest free loan is let's say generally frowned upon. 

Sorry, I don’t understand what you mean? The deposit for the move would come from the sale of our current house, so do you mean I should use some of that to repay the DMP upon selling? 

ACG

The chances of normal rates is probably 50/50. It might sneak through with some lenders once the defaults have dropped off, but it might not.

A lot will inevitably change in the next 3 years, a lot depends on where we are in 3 years time.