DMP and mortgage advise

Misc11

Hello,

I'm about to start a 4yr DMP paying about 2k/month, up to this point I have no defaults or any other black markers just a huge pile of debt that has become unmanageable.

I earn about 145k gross and my partner 50k (who has no debt and excellent credit score). We currently rent and my partner will have about 60k deposit in 2years time.

Would it be possible to get a mortgage in 2 years based on the above? 

Thanks for any help.

ACG

The £60k would need to represent around 15% deposit (in the current climate). 
The DMP will probably result in those debts defaulting, so the sooner they default the better really from a mortgage perspective. 

I take it you cant refinance it or rejig finances elsewhere? Its going to make a big difference to the rates you pay. 

Just to put it into perspective, an 85% mortgage on the high street will be around 4.5%. 
With a DMP you are probably talking closer to 8%. 

JMA74

how much are you looking to purchase for?  Numbers might work to put mortgage in your partners name and you just protect yourself with legal docs.   Try not open joint accounts or anything like that to avoid financial associations

Sncjw

Why can you not just pay the debt off your earn a high income and I find it crazy you can save 60k but you still have those debts. 

Misc11

Thank you for the numbers, thats really helpful to know.

Unfortunately no way to rejig the numbers, but from what you say it sounds like it's not impossible to get a mortgage? 

Misc11

Sncjw said:

Why can you not just pay the debt off your earn a high income and I find it crazy you can save 60k but you still have those debts. 

Yes absolutely right. That 60k isn't mine though, it's my partners. She isn't prepared to pay off my debts which is understandable.

Misc11

JMA74 said:

how much are you looking to purchase for?  Numbers might work to put mortgage in your partners name and you just protect yourself with legal docs.   Try not open joint accounts or anything like that to avoid financial associations

As in my partner just has single mortgage? I think she could only borrow about 200k on her salary which gets basically nothing where we live unfortunately. 

Ideally looking for something in the region of 400k.

Sncjw

What is the level of debt you got. With your high Income can you not pay it off. Also what will you be contributing to the hosue purchase. With a high depsoit I would protect myself in case of a split. Would the deeds be in her name soley? 

Any debt you have will be taken off how much they are prepared to lend you if you did a joint mortgage.