Getting a mortgage after a DMP

WesHooladan

Hi everyone,

Just looking for some advice really. Three years ago I started a debt management plan - I've since paid everything off (as of August 2020) and, with my partner, have now saved enough for a deposit for a house (approx £36,000 at the moment give or take)

BTW my credit file doesn't have any missed payments or any defaults or anything negative on it at all (other than the DMP obviously). My partners credit file is absolutely immaculate. We would really like to get a mortgage sorted so we can buy a house as soon as possible really.

I've spoken to a couple of mortgage brokers who have said that only adverse mortgage lenders would touch us - and the interest rate on these is obviously much higher. But I've seen a lot of stories on here and elsewhere online of people in similar circumstances getting mortgages agreed with high street lenders at much better rates of interest, and this is really what we'd prefer to do.

We'd be really happy to use a mortgage broker because we want to give ourselves a good a chance as possible of getting a mortgage, but we don't seem to be able to find any that seem like they have realistic options for us.

Does anyone have any advice about where to look?

Thanks very much everyone.

ACG

The devil is in the detail as to whether or not you can get normal rates. 

When you say there are no negatives other than the DMP on your credit report, your credit report does not show a DMP. It would usually show the accounts that were in the DMP as either defaults or AR. 

I assume you mean your accounts show AR markers? 
What percentage deposit do you have? How much does £36k represent? 
How many accounts show the DMP on your credit report? 

WesHooladan

Hi there,

thanks for your reply. There aren’t any defaults or AR marks on my file at all (none of the DMP payments were lower then what would have been the minimum at the time).

The houses we have been looking at range from £250,000 - £280,000. So at the lower end we have a 15% deposit but at the moment houses are being pushed up into the higher end where that stretches to just over 10%.

lonibra

If you went into a DMP in 2018, won't you have negative markers from just before then? Or have all those accounts dropped off?

If there's nothing on your credit report or bank statement then you could check and see if a Halifax online AIP works or not.

They don't ask about DMPs I think, only these questions

Has any applicant been in arrears in the last six years with any borrowing or ever had a property repossessed? Yes No

Has any applicant had a County Court Judgment (CCJ) or default registered against them or if self-employed Yes No against their business within the last 6 years?

Has any applicant been declared bankrupt, entered into an IVA or debt relief order within the last six years Yes No or still have an outstanding bankruptcy restriction

Otherwise you could contact one of the experienced MBs like ACG or KS who give a lot of helpful advice on bad credit mortgages on this forum.

Do make sure you shop around, there are a lot of MB firms out there who will charge nonsensical amounts as soon as they hear the word adverse.