Advice on mortgage chance

K_A_R

Hi there! I am wondering if I could have some advice/ guidance on the chances of getting a mortgage. My husband is currently in a DMP which is due to finish Dec 22. He has a number of defaults (8) that reach 6 years in Dec 21/Jan 22 total outstanding debt is £5577.00. I have a good credit score, my only major outgoing is a car loan . His mum wants to sell her house to us at a discounted price, but is eager to move later this year. What should we do to get the best chance of getting a mortgage or is it just unrealistic? Many thanks 

Caz3121

worth a read here https://debtcamel.co.uk/dmp-mortgage/
Do you particularly want to buy his mums house? could she sell it on the open market and gift some of the proceeds that he could pay off the debts and put towards a deposit for when you are in a position to buy?
(although she should read up and be aware of deprivation of assets whether gifting part of house value or cash)

K_S

@k_a_r WIth the low LTV typically associated with a concessionary purchase (buying at a discount from family) you should have options. However, with an ongoing DMP you are looking at specialist lenders and higher than mainstream rates. If you can at all wait till the turn of the year, your options will likely look much better.

K_A_R

Caz3121 said:

worth a read here
Do you particularly want to buy his mums house? could she sell it on the open market and gift some of the proceeds that he could pay off the debts and put towards a deposit for when you are in a position to buy?
(although she should read up and be aware of deprivation of assets whether gifting part of house value or cash)

Thank you for your reply! I will read the link now. Yes we do like his mums house it’s in need of some tlc, but has a lot of potential for it to be our forever home. Unfortunately his mum isn’t in the position to gift us the proceeds due to her bad financial situation (like mother like son). I am desperate for us to be homeowners and thought this would be a chance to get us on the ladder. Maybe it’s just not meant to be.

K_A_R

K_S said:

@k_a_r WIth the low LTV typically associated with a concessionary purchase (buying at a discount from family) you should have options. However, with an ongoing DMP you are looking at specialist lenders and higher than mainstream rates. If you can at all wait till the turn of the year, your options will likely look much better.

Thank you for your reply! Would our options be better once the defaults drop off his file then even if still in his DMP? Or would trying to agree a final settlement on his last 4 unsettled defaults sooner help at all? Thanks again

K_S

K_A_R said:

K_S said:

@k_a_r WIth the low LTV typically associated with a concessionary purchase (buying at a discount from family) you should have options. However, with an ongoing DMP you are looking at specialist lenders and higher than mainstream rates. If you can at all wait till the turn of the year, your options will likely look much better.

Thank you for your reply! Would our options be better once the defaults drop off his file then even if still in his DMP? Or would trying to agree a final settlement on his last 4 unsettled defaults sooner help at all? Thanks again

@K_A_R Apologies, I misread the DMP end date as Dec-21 not Dec-22. An ongoing DMP will rule out mainstream options unfortunately. If you are tentatively decided to go ahead with the concessionary purchase, I would recommend getting in touch with an adverse experienced broker and seeing what your options might be. You could always consider taking out a 2/3 year fix and then remortgaging at the end of the fix to a cheaper lender when your credit profile looks better. Good luck!