Is a mortgage possible when in DMP since 2018 ?

rae2820

Hi all, would welcome some advice or the experience of others.
So I have a DMP through Stepchange started in October 2018 .The current level of debt is still an eyewatering £25000.
Me and my partner of 3 years are wanting to buy a house together.
I'm not sure if this is even possible given my history so don't want to get carried away with the idea. He is anticipating he will have £160000 cash to put towards a house from the sale of his house.I am currently living in rented and it would actually be cheaper for us to be paying a mortgage.We earn £73000 between us and would be looking to buy a house in the region of £340000, so would be seeking approx £180000 mortgage.
Other factors that may be relevant  are my age ,51 he is 48. I am a longtime NHS nurse.He has moved to my area and started a local council job in early January so is in the 6 month probation period. I don't anticipate any issues there and he has a strong work track record.
thanks in advance

K_S

@rae2820 Satisfactorily conducted DMP for 4+ years, looking to borrow about 2.5x income at less than 60% LTV - based just on that, you *should* have options from lenders specialising in adverse. How much you'll be able to borrow may also be affected by background debt and any financial commitments.

The probation might be an issue depending on the lender but given that the 6 months are almost up it shouldn't be a show stopper.

rae2820 said:

Hi all, would welcome some advice or the experience of others.
So I have a DMP through Stepchange started in October 2018 .The current level of debt is still an eyewatering £25000.
My partner of 3 years is keen to buy a house together.
I'm not sure if this is even possible given my history so don't want to get carried away with the idea.He is anticipating he will have £160000 cash to put towards a house from the sale of his house.I am currently living in rented and it would actually be cheaper for us to be paying a mortgage.We earn £73000 between us and would be looking to buy a house in the region of £340000, so would be seeking approx £180000 mortgage.
Other factors that may be relevant  are my age ,51 he is 48. I am a longtime NHS nurse.He has moved to my area and started a local council job in early January so is in the 6 month probation period. I don't anticipate any issues there and he has a strong work track record.
thanks in advance

rae2820

Thanks so much for your reply K_S 
The only financial commitments between us outside of essential living expenses are my DMP at £98 per month and my union fees at £26. we have no other loans/HP etc between us.I can also claim  the first of my 3 pensions Dec 2026 which will bring in about £900 per month.
I am planning to settle my debts with the lump sum from that then, not sure if that has any relevance. In terms of credit scores ( although I am reading these are of little significance ?)  Experian -764/1000 ( affordability score 85/100).Transunion 536/710. Equifax 756/1000.

ACG

I agree, I think you should have options.
I am not sure you will have high street options as the adverse from the DMP (ie the defaults) will probably still be showing. But I also dont think you will need a specialist bad credit lender either. I think you might be able to get something placed with a little building society at reasonable rates. 

rae2820

ACG said:

I agree, I think you should have options.
I am not sure you will have high street options as the adverse from the DMP (ie the defaults) will probably still be showing. But I also dont think you will need a specialist bad credit lender either. I think you might be able to get something placed with a little building society at reasonable rates. 

Thanks ACG for your reply- would I seek to approach a little building society directly ( although I am not quite sure what constitutes a little building society )or would it be best to find a broker ?

ACG

Definitely a broker.
The building societies I think you would be looking at its quite unlikely you would have heard of them. 

rae2820

ACG said:

Definitely a broker.
The building societies I think you would be looking at its quite unlikely you would have heard of them. 

Great help ACG thanks this is all surprisingly reassuring ...off to the minefield of finding a broker !

ACG

If you do not ask you do not get. It is always worth making the call, if the answer is no, you are no worse off. 

In your favour, your adverse is quite historic and you will have a very good deposit.