Please help, need advice about getting a mortgage After a DMP

Sorenya

I'll try and keep it short. I had a DMP with Stepchange which started in 2014. Last payment made to it in February this year. All defaults over 6 years old and no longer on my credit file, have checked all three main agencies. None of them ever said I was in a plan just showed as default hence all not showing now. By the time I'm ready to go no payments to Stepchange will be showing on my last 6m of bank statements either. My credit rating is actually pretty good now. 

However mortgage broker is saying some lenders absolutely won't lend to me as a result and some will want it to have been settled 1, 3 or 6 years? Thing is I haven't fully settled all of them, I have asked for CCA agreements from the last few remaining creditors (all debt collection companies) but none were forthcoming so I stopped payments. I am negotiating settlements with them all, four creditors left. I didn't think this would be a problem as none of them are on my credit file so providing I don't approach certain banking groups I thought it would be OK. There's no evidence of a dmp anymore if that makes sense? I'm gutted if having a clean credit file and no dmp payments on statements is still going to mean a more difficult to find and properly more expensive mortgage? I'm hoping broker has misunderstood and thinks my file will show evidence of payment plans etc? Any advice hugely appreciated. 

K_S

@sorenya With regard to your DMP, as a broker if I know that you have a recently concluded DMP, I have to take that into consideration when looking at lender criteria. Whether it shows on your bank statements is a different question.

When I fill in the DIP form, I have to honestly answer questions that may include whether the applicant has ever / last X years been in a DMP. If yes it either not allow me to proceed or may ask for further details and refer the DIP for manual review. I hope that makes sense.

Sorenya

Thank you thats very helpful. 

ACG

Sorenya said:

Thank you thats very helpful. 

That does not mean lie btw (not that I am saying you will). That is the worst thing you can do.

There should be lenders who will consider you at normal rates or at least near normal rates. It not being on your bank statements/credit report does not mean there is no record of it anywhere. Honesty is the best policy as they say. 

K_S

ACG said:

Sorenya said:

Thank you thats very helpful. 

That does not mean lie btw (not that I am saying you will). That is the worst thing you can do.
There should be lenders who will consider you at normal rates or at least near normal rates. It not being on your bank statements/credit report does not mean there is no record of it anywhere. Honesty is the best policy as they say. 

@sorenya Yes, I'll definitely second that! I hope I didn't give that impression in my post. I was simply (very ineloquently as it turned out) trying to explain why it matters to the lender, why the broker has to take it into account and so should you.

Sorenya

Oh no I didn't take it that way! I meant thank you because it helps me understand why it's important and why some lenders may still be off the table. I wouldn't ever lie about anything. 

I guess I've spent the last 7/8 years thinking about the moment my credit score is good again and my debts are gone, and all that will mean, and felt a bit sad that it's not enough, even when you sort it. I'd misunderstood that things being cleared and off record meant they couldn't be held against you anymore but obviously that's wishful thinking!