Can I get a mortgage with a 5 year old DMP? 13 March at 8:26PM in Mortgages & endowments 3 replies 179 views

edlondon

Hello

I am hoping to apply for a 25 year mortgage and would ideally need something 4.5x salary. I have a 16%-ish deposit and am 41, and have been in a job 5 years.

My credit rating is all good except for a Halifax credit card, closed in January 2019, which is reported as being in a DMP for five months five years ago in 2018. Unfortunately there is also data older than six years old still showing on my credit reports showing missed payments and arrangements to pay on the same card 6-7 years ago (Yep, I messed up with that one card!). The card was paid off in full at closure. 

Would this scupper my chances of getting a decent mortgage / should I just wait until January 2025 when the account will drop off the reports all together?

thanks so much for any thoughts/advice. 

ACG

Was it a DMP or an arrangement to pay? 
One is an agreement with a company or a debt collection agency, the other is an agreement through a third party such as stepchange or creditfix. 

In any event it should be possible, it might just affect the rates available. Get your credit report to a broker. 

edlondon

It was a DMP. Thanks. 

ACG

I reckon best case scenario you would be looking at rates of around 5%, worst around 6.5%. 
You might be able to get high street rates but I think it really depends on how everything appears on your credit report so potentially a little under 5% but that could be hit and miss.