Adverse mortgage help

Newmum92

Hi,

Is there anyone on here who is a mortgage advisor specialising in adverse mortgages? 

I was hoping to get some advice in terms of what my best options are moving forward for re-mortgaging and moving house in a few years. I have recently started my own debt management plan so I’m keen to ensure whatever steps I take are in the best interests of my mortgage for the future. 

If there is anyone able to give some advice let me know and I will send a message or post my situation on here- if you can let me know exactly what you need to know re: my adverse. thanks very much, 

ACG

Being in a DMP at the time of application will more or less rule out every high street lender. At least for a few years, 3+. 
There are lenders who will consider you but they will look at how the DMP has been conducted (so ensure your payments to that are made on time), and any Defaults etc. 

Its difficult to advise more than that though as all signs appear to suggest we are going to go through a tricky year or 2. Lenders may start tightening up on criteria. 

There is nothing you can do beyond paying your DMP on time. If more criteria does not start to tighten up then you should probably aim for a 15% deposit. If they do, then maybe a 25% deposit. 

Newmum92

ACG said:

Being in a DMP at the time of application will more or less rule out every high street lender. At least for a few years, 3+. 
There are lenders who will consider you but they will look at how the DMP has been conducted (so ensure your payments to that are made on time), and any Defaults etc. 

Its difficult to advise more than that though as all signs appear to suggest we are going to go through a tricky year or 2. Lenders may start tightening up on criteria. 

There is nothing you can do beyond paying your DMP on time. If more criteria does not start to tighten up then you should probably aim for a 15% deposit. If they do, then maybe a 25% deposit. 

Hi thanks for the message that’s very helpful thanks. 

I’d definitely be looking to wait around 4 years at least due to the adverse. 

In regards to defaults- those that are over 3 years old are they discounted by some lenders no matter the amount? One of my defaults is for a £18k loan for example but by the time I apply would be 4 years since the default. 

If some of my creditors only mark my credit file as AP rather than default (despite me asking for them to default it), how this would impact? 

Thanks a lot

ACG

Dont worry about it. The specialist lenders are used to doing DMPs, defaults, arrears, CCJs etc. All of the things you mention are normal. Some lenders have no limits on Default amounts, others do. A lot will change in the next 4 years so just concentrate on paying your DMP and trying to build up your deposit.

Newmum92

ACG said:

Dont worry about it. The specialist lenders are used to doing DMPs, defaults, arrears, CCJs etc. All of the things you mention are normal. Some lenders have no limits on Default amounts, others do. A lot will change in the next 4 years so just concentrate on paying your DMP and trying to build up your deposit.

Ok thank you 😊 when defaults disappear from the credit file but the debt remains (in the DMP) do all the debts still get included in the affordability assessment? Or would they just calculate what I am currently paying towards the debt… if that makes any sense! We would like to move to a bigger house next time but slightly concerned that the amount of debt will massively reduced what we can borrow 

ACG

Some lenders use your contractual payments (ie what you would have paid before the DMP started), most will use the DMP payment amount.