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4 yrs after DMP settled, delinquent balances still showing despite being settled!!!
Homebuyer1973
Posts: 40 Forumite
Right, we got a DIP from our bank and have sold our house. We have also made an offer and had it accepted on our onward purchase. In our mortgage meeting last week our adviser asked about our historic adverse credit. I explained that our DMP was settled 4 yrs ago but that I had noticed that my credit score was still low. Since the DMP was settled we have taken out some lines of credit believing that this would show that we are once again regular and reliable payers and help boost our scores, no late payments recorded in the last 48 months. Our MA advised that I check our Equifax credit file and that as long as there were no delinquent balances we had a reasonable chance as we are also in a position where we can put down a deposit of 40% - 50%. To my horror, four of our previous creditors have recorded delinquent balances even though we have settled our accounts with them and it says ‘settled’ and a balance is recorded as ‘zero’ owing. I’m planning on contacting Stepchange on Monday to explore specialist lending again as I very much doubt we’ll be able to secure a high street mortgage. Is there anyone out there who can offer any advise? Obviously, I don’t want to be turned down on application so would rather go with someone who understands the historics of of adverse credit. Any advise will be most grateful received. Thanking you all in advance.
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Comments
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With that level of deposit and your adverse being historic, you probably dont need specialist lenders. You may be looking at normal rates (around 1.7%), worst case scenario should be rates of around 3% from what you have said.
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.2 -
@homebuyer1973 You've had a DIP accepted (I'm assuming this is a high street bank), are looking at sub 60% LTV and have a clean 4 year history. Lots of positives, so don't assume you need to pay specialist rates. If the current application with the bank doesn't work out, might be worth considering an experienced whole of market broker. Good luck!
I am a Mortgage Adviser - You 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.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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