Declaring self managed DMP in mortgage application

BeingDebtFreeStartsHere

Hi,

We started to self manage our debt management plan about 5 years ago. All defaults dropped off our credit files in 2020/2021. We are still paying our creditors each month but our credit files are clear.

We are possibly looking at mortgage options - would we need to inform a broker of our creditor debts as there is now no evidence of them on our credit files?

Thank you for any advice.

BDFSH x

K_S

@BeingDebtFreeStartsHere If you have a monthly financial commitment towards an outstanding debt, you should be disclosing it to the lender/broker.

If you're paying £x a month to debtors like Lowell, etc. and you have a clean credit history, it might not matter as much as you fear.

BeingDebtFreeStartsHere said:

Hi,

We started to self manage our debt management plan about 5 years ago. All defaults dropped off our credit files in 2020/2021. We are still paying our creditors each month but our credit files are clear.

We are possibly looking at mortgage options - would we need to inform a broker of our creditor debts as there is now no evidence of them on our credit files?

Thank you for any advice.

BDFSH x

ACG

It depends on what you are asked. 
I think ours asks if you "have ever had...", so we would expect it to be disclosed. We might not necessarily disclose it to the lender. But we have various reasons why we would ask. One because it covers all eventualities so we have the information should we need it. But also if you have defaulted with Natwest/RBS for example and not paid it off in full they will hold a grudge forever, so despite the defaults dropping off, we would be making a wasted application to natwest if we did not know. 

Be upfront about it with the broker. They are employed by you to get you the mortgage, they are on your side. 

BeingDebtFreeStartsHere

Thank you both so much for your advice