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Mortgage with recently settled DMP
daffodil02
Posts: 7 Forumite
Hi all
I’m a newbie and have been lurking a while. Posting on the off-chance of some advice but understand that no-one can give a specific answer! I’m selling my house that I own (it is mortgaged), and buying with my partner. He’s had a DMP that he has been chipping away at for years. We spoke to a mortgage adviser who said he wouldn’t touch as with a current DMP as it’s too much work. Since then my partner has negotiated a settlement and we’ll be paying the DMP off in full in the coming weeks.
What do we need to be prepared for when applying for a mortgage? I know we’ll undoubtedly need to find a broker to help. Just not sure if we should rent for a bit or perhaps be realistic and look for a much smaller house on my salary alone to allow some time to elapse since the DMP will close.
To give some context - there is no defaults on the DMP payments in past 6 years and no other ‘negative’ credit marks on our files. We will have about 25% deposit for a property in the range we were looking at.
Thank you in advance for any responses, they are appreciated.
I’m a newbie and have been lurking a while. Posting on the off-chance of some advice but understand that no-one can give a specific answer! I’m selling my house that I own (it is mortgaged), and buying with my partner. He’s had a DMP that he has been chipping away at for years. We spoke to a mortgage adviser who said he wouldn’t touch as with a current DMP as it’s too much work. Since then my partner has negotiated a settlement and we’ll be paying the DMP off in full in the coming weeks.
What do we need to be prepared for when applying for a mortgage? I know we’ll undoubtedly need to find a broker to help. Just not sure if we should rent for a bit or perhaps be realistic and look for a much smaller house on my salary alone to allow some time to elapse since the DMP will close.
To give some context - there is no defaults on the DMP payments in past 6 years and no other ‘negative’ credit marks on our files. We will have about 25% deposit for a property in the range we were looking at.
Thank you in advance for any responses, they are appreciated.
0
Comments
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First thing would be to find a different broker. Sounds like you are not really his typical customer, but at least he was honest about why it wasnt for him.
Unless the DMP has been satisfied for at least 3 months at application stage, it is probably going to crop up anyway. Depending on which companies were included in the DMP, you might find options limited. There is a possibility for normal rates though now/once the DMP has been settled.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
Thank you for taking time to reply, hopefully there are some options open to us.0
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