Getting a mortgage with a DMP

kateyface1

Hello all, 

I have been on a DMP since 2013 and will be fully paid up next July. I have never missed a payment and wasn't in arrears prior to taking out the DMP. I just found that I never had any money left over after I had paid all my monthly payments. Life lessons have been learned and I am much better at money management now.

My query/worry is that now my partner and I are looking to buy a home together, that my DMP might haunt me. Some of the questions I have seen on the AIP are worded ' have you entered into a DMP in the last six years'. Does this mean that as I entered into my DMP over 8 years ago that I could answer no to this question?

I'm not trying to dodge the question but also don't want to make me seem  worse than I am if that makes sense. I have no other marks on my record apart from the DMP and have fully kept to the agreement. I would hate to think that I have messed up my future owing to my previous post-student period of financial recklessness.

Has anyone ever been in a similiar situation and how did you get on?

ACG

The best thing to do is to check with the lender. I used to say answer the question as it was asked but as time has gone on I have changed my approach to answer the question as the lender would expect. 

Have you checked your credit report to see how everything appears on there? That is probably the important thing at this stage. If it looks a bit of a mess then you might find your options are limited anyway. If it looks ok, then with a bit of research you should be able to get normal rates. 

funky1471

When they say DMP do they actually mean a formal agreement such as an IVA? It sounds like you possibly had an informal agreement in-place?

Each lender would vary but I've seen some specifically ask whether you've been subject to an IVA (a type of formal agreement) but don't ask to know about any informal agreements you may have had. For example Santander:

• [you must] have never been declared bankrupt or subject to an individual voluntary arrangement

The wording to me is pretty clear there that you wouldn't be excluded if you had some sort of informal agreement, only if you were subject to a formal IVA.

Thrugelmir

If you've got the savings settle the DMP as soon as possible.  Why wait until next July?  Remove the monkey off your back and start afresh. 

Dandytf

my dmp is finished since Jan- a few months ahead of what was Nov' end date.
Is it possible to approach my mortgage provider Nationwide, to request a shorter term re mortgage
I want to avoid a declined full application, which a term change means.
cra reports are clean of defaults post 6-10 years.
Score is recently lower as I have a few very low balance credit cards.
t.i.a.

MovingForwards

Dandytf said:

my dmp is finished since Jan- a few months ahead of what was Nov' end date.
Is it possible to approach my mortgage provider Nationwide, to request a shorter term re mortgage
I want to avoid a declined full application, which a term change means.
cra reports are clean of defaults post 6-10 years.
Score is recently lower as I have a few very low balance credit cards.
t.i.a.

Please start your own thread as your query is totally different to OP.

K_S

Dandytf said:

my dmp is finished since Jan- a few months ahead of what was Nov' end date.
Is it possible to approach my mortgage provider Nationwide, to request a shorter term re mortgage
I want to avoid a declined full application, which a term change means.
cra reports are clean of defaults post 6-10 years.
Score is recently lower as I have a few very low balance credit cards.
t.i.a.

@dandytf Is there any specific reason why you want to reduce the term? Overpaying (up to the penalty-free limit) could achieve the same result as you are looking for. https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

lonibra

As above. No need to unnecessarily shorten the term, it's a pointless exercise which will involve a lot of paperwork