Am I completely wasting my time applying for a High street Mortgage if I had a DMP in the past??????

Homebuyer1973 · 29 April 2021 at 7:50PM

I am really hoping someone out there can give me some advice. My hubby and I paid off our DMP 3 yrs and 9 months ago. 3 years ago we had to take out our mortgage with Magellan as obviously the hight street wouldn't touch us. We were told at the time we would most likely be able to get a high street mortgage by the time our 3 yr fixed rate came to an end. I was phoned by our bank offering us an FHC and it was then that they offered us a mortgage interview, that was in late March. We are just about to apply for a mortgage with our bank, who gave us a mortgage in principle. We have already sold our house and have had an offer accepted on where we want to go (moving due to promotion and too far to commute) I've just had a call from a senior advisor from the bank querying why we borrowed from Magellan and had we had credit problems in the past. Obviously I explained that it was historic and that the only credit we have taken out was for a van for my hubby's work and 1 credit card. I only took out the credit card to try and build my credit score but my score seems to have stagnated ironically. Since our DMP was cleared we have NEVER defaulted on any payments including our current mortgage. This had made me think they're unlikely to lend to us and so I'm thinking of going to a specialist broker. I'm feeling worse now than I felt 3 years ago when our situation was far worse. I also know that COVID has also affected the mortgage landscape too. Just to note too, neither my hubby or I have been furloughed.

My dad is also coming to live with us and is selling the house that he and I have an equal share in, there is 100% equity in the property and it has been valued at £180K. We also have approximately £90K equity from our own sale. The property we have had an offer accepted on is £350K. Any advice will be gratefully received.

ACG · 29 April 2021 at 7:53PM

Ive not read through all of your post, just skim read it but there is definitely potential for normal rates 3 years after a DMP finished, even sooner. It all depends on what your credit report looks like. If you have passed a DIP it sounds promising.