Advice needed for mortgage and DMP

MrsYa8

I’m looking for some advice. Please don’t judge me as I’m already feeling considerably ill from all the stress this is causing and literally have no idea what the future holds for my family. I have no idea what to do!! 

To cut a long story short, I entered in a DMP in 2017. After a battle with infertility and multiple miscarriages my debt increased and this put increasing pressure on my relationship with my husband, (he is so to the book and hates any sort of unnecessary debt) we separated and I had no choice but to enter into to DMP to manage my debts as I couldn’t afford the repayments and support a child on my salary alone 

My husband and I did get back together 6 months down line and he absolutely hates that I have the DMP but has tried to be supportive towards me as possible. 

After paying all my debts on time every month for some reason that I don’t even know how or why but 3 payments were missed on the DMP. I was so ashamed of myself as I’m such a good honest person and this made me feel so sick that I had let my creditors down after they agreed to help me. I paid off some creditors and cleared the outstanding amount as soon as I realised, I then phoned and spoke with the creditor who had outstanding payments who understood that mistakes happen and I have continued to make payments as agreed. 

The issue we have now is that we are now homeless. Our private landlord wanted to sell our rented house and with absolutely zero social housing in my area (we have a buisness in our town and children in school so moving away isn’t an option) we were offered emergency housing in a travel lodge with no kitchen or garden (we have a dog.) we have absolutely nothing to fall back on. We have had to move back in with my mum who lives in a tiny 2 bed flat. 

my husband thought it would be an idea to discuss a possible option of buying a house using the HTB. Our mortgage advisor said he could help us and we told him everything from my past! 

The problem he didn’t listen to half of what we told him and he seems to be very surprised when something is flagged up. We are now in the middle of a mortgage application and the missed payments on the DMP has now been flagged up. he said he wasn’t aware off (I spoke to him on the phone the week before and told him that I don’t know what happened and i can only put it down to the fact I had just had my 3rd baby. I have no excuse other than it was missed but as soon as I realised I made sure I dealt with it. 

We are using a specialist lender. I have written a letter to explain the situation but can any one shed any light on whether they will even consider this letter. At the point of the missed DMPs payments no other bill had been missed. Everything else was paid on time. Everything else with our finances is in good standing order other than the DMP and the missed payments. We have never missed a utility bill payment or a rental payment. 

I know what every one is going to think of me! Your all going to say to not look into getting into a mortgage yet. But we have ran of options.  The housing market is horrendous with nearly 50+ applicants applying to rental houses. 

We reserved a new build house due to complete in Dec as our mortgage broker said he would be able to help us. 

I have never been so ill, I can’t eat, sleep or do anything as I’m completely ashamed of myself for getting in this state and now my family are homeless! 

I have increased my hours and will earn an extra £10k a year. Im going to use this extra to pay off my DMP as I feel so guilty that I owe this money. I just want to get back to being a normal personal when it comes to finances. 

I know in my heart that the mortgage lender is just going to decline us. But it was a genuine mistake and it wasn’t because we didn’t have the money as we did. 

I’m looking for any advice possible? We can afford our mortgage repayment easily. We have an annual household income of £64,800. But increased my hours at work last month so that makes our new annual household income to be £74,800. The mortgage application has my old salary and not my new salary. 

I’m so worried. I know I’m a good person who prioritises my bills. But I know it won’t look like that when some one reviews those missed payments. 

Thank you. 

MovingForwards

First off calm down, what's happened in the past is just that and you're moving on from it. Beating yourself up over it isn't doing you any favours.

You entered the DMP in 2017 but haven't said when the missed payments were or who the lender is.

boxer234

I have no idea about the ins and outs of a mortgage in this situation but please stop beating yourself up for your debt.  It doesn’t make you a bad person.  Can your husband buy in his name only ? 

MrsYa8

MovingForwards said:

First off calm down, what's happened in the past is just that and you're moving on from it. Beating yourself up over it isn't doing you any favours.

You entered the DMP in 2017 but haven't said when the missed payments were or who the lender is.

boxer234 said:

I have no idea about the ins and outs of a mortgage in this situation but please stop beating yourself up for your debt.  It doesn’t make you a bad person.  Can your husband buy in his name only ? 

I’m just finding it really hard to cope when my children are upset they have no home or any of their belongings as they are all in storage. I can’t undo the past at all, but I’m so annoyed at myself for missing those payments! I have a statement that shows how up todate the payments had been until the missed payments last year. 

Unfortunately I don’t think my husbands wage would cover the purchase.  I live in Cornwall and the house prices are expensive - even more so now. 

The missed payments were Aug, Sep, Oct. I then settled two creditors and spoke to the creditor with the outstanding amount  and they instructed I paid in December. We are trying to get a mortgage with Kensington Mortgages. 

boxer234

What does your broker think ? I’m sorry I can’t answer as I’m clueless hopefully someone else can help.  What about shared ownership on hubby’s wage.  Shared ownership isn’t ideal but could work for you.  Off course you may well get this mortgage but it’s good to have a plan.  I hope it works out but it’s not worth making yourself ill .  I hope it works out for you. 

MovingForwards

You will need to speak with your broker and be guided by them. It's amazing what they can do when things don't quite fit lending criteria. By the time you would be ready to complete the purchase, the missed payments will be over a year old (assuming they were missed in 2020 and not before that).

Also it reads like the 3 companies are now paid off, leaving the others in the DMP.

There are other lenders, you're not with the last available one for your circumstances.

Kids are resilient, but also reflect how the parents react round them. You need to put on a brave face, saving the stress and anxiety for when they're in bed.

Are you doing the DMP yourself or via a charity / DMP company? 

If you haven't already, make sure there's a standing order set up to ensure the payments are made on time, then make a note to check it's gone out each month.

MrsYa8

MovingForwards said:

You will need to speak with your broker and be guided by them. It's amazing what they can do when things don't quite fit lending criteria. By the time you would be ready to complete the purchase, the missed payments will be over a year old (assuming they were missed in 2020 and not before that).

Also it reads like the 3 companies are now paid off, leaving the others in the DMP.

There are other lenders, you're not with the last available one for your circumstances.

Kids are resilient, but also reflect how the parents react round them. You need to put on a brave face, saving the stress and anxiety for when they're in bed.

Are you doing the DMP yourself or via a charity / DMP company? 

If you haven't already, make sure there's a standing order set up to ensure the payments are made on time, then make a note to check it's gone out each month.

Thank you so much for taking the time to reply to my posts. I do appreciate your help. 

Our broker has gone quiet. But this is quite normal for him. He is great but his communication has never been the best. I am literally just hoping a miracle happens and my letter explains my situation. I just hope that they see that it was just a genuine mistake. 

I did have the DMP through StepChange but when I paid off 3 creditors - leaving one creditor to pay. I decided to manage it myself. I have now changed the way I manage my finances. I now have a bill only bank account and then another account for spare money. 

Thrugelmir

Where's your deposit coming from? 

MrsYa8

Thrugelmir said:

Where's your deposit coming from? 

We are using the HTB and will have a 5% gifted deposit as early inheritance from my husbands uncle. He decided to give it to us now because we have no home and living with my mum.