Mortgage after DMP?

tinysomniac1

Hi all, newbie here. I'm looking for some advice or experiences of getting a mortgage after a DMP please. 

In 2017 I got in to a bad way financially with the 'help' of an ex. I was using payday loans most months - often using 2 different companies. I ended up in a DMP and have since paid everything back (just this month.. woohoo!). 6 of my accounts defaulted, with the most recent default being 2yrs 10 months old now. 

Financially I am now in a much better position, I have a LISA and bonds and hope to have a hefty deposit for a house in the next few months (20% deposit). I have one credit card which I pay in full or at the most have a very small amount on. I am hopefully doing all I can to rebuild my credit history. 

However. I spoke to a financial advisor today who pretty much wrote me off. She said that I would not be able to get a mortgage at all until 6 years after my final DMP payment, regardless of the fact the defaults would have dropped off nearly 3 years prior to this. She said a DMP is viewed the same as an IVA. Is this true? Am I completely untouchable for ANOTHER 6 years? 

Any advice or experiences would be really helpful. Thank you. 

Amy32

tinysomniac1 said:

Hi all, newbie here. I'm looking for some advice or experiences of getting a mortgage after a DMP please. 

In 2017 I got in to a bad way financially with the 'help' of an ex. I was using payday loans most months - often using 2 different companies. I ended up in a DMP and have since paid everything back (just this month.. woohoo!). 6 of my accounts defaulted, with the most recent default being 2yrs 10 months old now. 

Financially I am now in a much better position, I have a LISA and bonds and hope to have a hefty deposit for a house in the next few months (20% deposit). I have one credit card which I pay in full or at the most have a very small amount on. I am hopefully doing all I can to rebuild my credit history. 

However. I spoke to a financial advisor today who pretty much wrote me off. She said that I would not be able to get a mortgage at all until 6 years after my final DMP payment, regardless of the fact the defaults would have dropped off nearly 3 years prior to this. She said a DMP is viewed the same as an IVA. Is this true? Am I completely untouchable for ANOTHER 6 years? 

Any advice or experiences would be really helpful. Thank you. 

Hi, I am no expert at all however this is incorrect. I am currently in a DMP with a few months left and my defaults are from about 4 years ago with one only last year. I have just exchanged on a property and due to complete tomorrow 🤞🏻 Yes it’s not high street rates however it’s for the house we wanted, and is still less per month than we are paying in rent! I would suggest going to another broker. 

K_S

tinysomniac1 said:

However. I spoke to a financial advisor today who pretty much wrote me off. She said that I would not be able to get a mortgage at all until 6 years after my final DMP payment

@tinysomniac1 Generally speaking, that isn't correct. Was this a mortgage broker who told you this?

tinysomniac1

K_S said:

tinysomniac1 said:

However. I spoke to a financial advisor today who pretty much wrote me off. She said that I would not be able to get a mortgage at all until 6 years after my final DMP payment

@tinysomniac1 Generally speaking, that isn't correct. Was this a mortgage broker who told you this?

Thank you, yes it was, although she was unsure about my circumstances and did a bit of googling whilst on the phone!

ACG

Try to find a broker with experience in adverse. 
You can get a mortgage with an ongoing DMP, its unlikely to be normal rates - probably around the 4% mark. 

Some lenders will take your DMP payment as a commitment, others will take your original contractual payments so the way they are assessed can differ significantly. 

sammyjammy

I should find another broker!

tinysomniac1

Thank you all for your replies, I feel MUCH more hopeful now. 
ACG - I have now paid the debt off and so my repayments to SC are £0, which I assume will help?


I have found that SC have a mortgage advice service, which is fantastic. I'm going to speak to them in the morning and see what they suggest.