Coming out the other end questions ?

omegaman1

We got ourselves into a pickle 8 yrs ago and had circa 40k debts so went onto a DMP with stepchange, we have took the stance that we spent it so will pay it back and are now down to about 2k owed to banks and credit cards. It's been pretty straightforward and our credit scores are now perfect with no defaults showing and have now easily got  0% credit cards with no balances ( very disciplined now ) which is nice, we will be able to clear the last bit's outright in the next few months.  I know we are now creditworthy and I am wanting to renegotiate my mortgage as we are paying a stupidly high interest rate but have 40k left on it with 50k equity, my worry is that we won't be able to get a reasonable deal due to having been on a DMP 

Should I just approach lenders that we have no history with as I don't want a stream of refusals on my file if possible ? 

Are the defaults still visible to lenders after 8 yrs ?

It feels great to be near debt free but I'm now worrying that after 8 yrs and repaying every penny I'm going to be stained by it for years to come, can anyone advise please?  

To anyone starting out on a DMP good luck and stick with it, hopefully my experience shows it is doable ! 

Iwillbedebtfree

Hi
Firstly, congratulations on getting this far, my story is very similar - I went onto a DMP owing c£40k in 2010 and repaid diligently for c.8 years then settled the final balances with F & F in 2018/19. It is a slog but so worth it as you start to come out the other side. 

As you have checked that the defaults are no longer visible on your credit file ( have you checked them all, as there are a few different ones) this is all lenders will see unless they have prior history with you, but in my experience- having returned to lenders I had previously defaulted c.8 years ago - I was able to secure a great mortgage deal from one (40% LTV) and a 0% credit card deal from the other. 

I find that I don’t need to declare the DMP in applications so now that it’s off my credit history it’s as if it never happened- it hasn’t stopped me getting any financial products since (all well- managed now I should add).

I think that even if you have a negative history with a particular lender, although they will still have a record of it - they are more concerned with your current financial circumstances - if they are very different to 6+ years ago - my experience is that it doesn’t count against you. 

sourcrates

Defaults disappear after 6 years, no one gets punished forever.

Some banks keep internal records for longer, so be choosy who you approach.

Flower1976

I think you will find that mortgage lenders will allow you to do a product transfer without any checks and they can be done with a simple online form (the bank I works for does) 
Beat wishes

Coffeekup

I was in DMP for 7 year's, 6 months after it finished (me paying everything off) I applied for a mortgage with the bank I had been with before, during and after my DMP, with my bank being 2 of the 7 creditor's I owed money to.
After lots of wincing I got the mortgage but I learned at a later date your defaults fall off you credit file after  6 year's, either way it was the start of the grind for the rest of my life. Learned my lesson from paying it back too...if I can't afford it I don't have it.

omegaman1

Wow thanks all, that is extremely reassuring feedback !    

lemondrops69

Reading the title of the thread I was expecting something else 

gizmo111

I think in the current climate you would be wise popping over to the mortgages board and getting some advice from one of the brokers there, before risking the searches and rejections that could affect your credit history.

enthusiasticsaver

As others have said defaults fall off your file after 6 years.  If you stick with your current mortgage provider they probably will not even credit check you anyway. If you want to move elsewhere maybe if you do not have a mainstream mortgage you  may want to use a mortgage broker who will know which ones are likely to accept you.