Mortgage with DMP marker - please help!

JemmaSapph123

Good afternoon All.

I am desperately hoping that someone can help me.  I have spent the last 2 days reading through the posts on this forum trying to find a positive answer! 

I am a 40 year old, hoping to be first time buyer.  I have a £76,000 (20% LTV) deposit but am needing to secure a 5.5 x mortgage in order to afford anything in my area.  My salary is £58,000 per year, secure employment etc.

I had some financial issues back in 2016, so (you guessed it!) entered into a debt management plan which ended in Feb 2020 - with all debts being paid off.  Having spent the last 4 years since 2020 re-building my credit score (I have an excellent 970 score with Experian, an Excellent score with Transunion and Equifax), and saving for a deposit etc, I thought that I was in a good position to obtain a mortgage however have recently checked my combined credit report on check my file and can see that I have 1 adverse account still showing!!  This is a Vanquis account which was part of my DMP showing as satisfied in Feb 2020 but has AP markers dating back to the 3 missed payments in 2016.  I am absolutely devastated to say the least.  I have ask Vanquis to remove these markers, they have refused so there is nothing that I can do on that front.  I have to just live with the markers on the account for the next 2 years (until the account has been closed for 6 years).

My question is, do I have any hope what so ever of achieving the required 5.5 x salary mortgage with a 20% deposit or am I just kidding myself?  I have no dependants, no other debt (other then a credit card which is paid off in full each month) - other than that 1 marker I am in what I would consider a good position.

Is there any hope at all?  I am 40 years old currently, so if I have to wait a further 2 years until this eventually drops off my file, I will be 42.... I feel so desperate.  Please, please could anyone give me some advice, guidance, positive outcomes who have been in a similar position.

This feels like a life sentence!  I paid off all debt 4 years ago, the missed payments were in 2016, nearly 8 years ago - will that count as something?

Please help! Xxx

ACG

Which credit agency are the arrears showing with? 
You could ask them to remove it, also you could bang in a complaint to vanquis and see what they say. 

Have you spoken to a broker? Give one a shout, I think you should potentially have options. 

fatbelly

Ah. The dreaded AP markers. They are the reason why over on dfw we advise not to start a dmp until you get default marks.

Unless you are out of time you could ask FOS to look at Vanquis's final response

JemmaSapph123

Thank you so very much to both of you.

ACG - it is only TransUnion that is showing the actual AP markers.  Experian and Equifax, although don’t show the AP markers, the reporting goes back to 2016 so shows the 3 missed payments so I would imagine anyone looking at these files would guess that this was a DMP?  As I said, my credit score on Experian is Excellent at 970, although I know the scores aren’t seen by mortgage lenders.

Yes I have been through the complaints process with Vanquis who refused to remove the markers and then I went through the FOS process who upheld Vanquis’ decision!!  So I have tried everything!  As I’m sure you know, because the DMP was settled in Feb 2020, legally Vanquis are allowed to report it on my account until Feb 2026 by which point I would have suffered 10 years adverse credit!  Ahhh if I had known what I know now, would never have entered into the DMP.   This has caused me no end of stress.  

I am stuck with these markers on my file for another 2 years and am just so terrified that I won’t qualify to borrow 5.5 salary which living in London is what I need to be able to afford anywhere.  Failing that I would need to save an additional £50k + which is obviously not an easy task!

Sorry for the long post, but yes just to add, I do have a broker who found me a 5.5 x mortgage but after I told him about these markers he has suggested that the only way to find out what I could borrow is to apply for a mortgage in principle.  Does this sound right?  I would have thought that a broker would be able to gauge from looking at my credit file (which I have sent him) whether I stand a chance or not?

Feeling very disheartened and sad 😔

Thanks again for your replies xx

ACG

3 missed payments does not indicate a DMP, it indicates 3 missed payments - it could be arrears, a payment plan, a DMP, bankruptcy - it could be anything. If/when the application asks about a DMP, that will probably point out they are from a DMP. 

I thought everyone in London had a spare £50k? Is that not the case? Ill never forget doing a mortgage for a million pound for a mid 2 up 2 down terrace in London! You could buy a street of those houses up here for that! Bonkers! 

There are 3 types of lenders:
1) The high street - the broker cant guarantee anything as it will come down to credit score. In all honesty there is a chance you could pass the credit score. But doing it 5.5x income is a tough ask. 
2) Smaller building societies - these lenders are usually more criteria driven. They are quite cautious so again, passing an underwriter with the adverse, 5.5x income and affordability is also a tough ask. 
3) Adverse lenders - generally more relaxed but also more expensive. I can only think of one who can go to 5.5x income (whether or not they would on your case I am not sure as it depends on affordability). 

The broker doesnt actually know unless it is option 3, even then we can probably only be 99% sure. We might have a good idea, but there are times where I am only 50/50. I think it bodes well that they are not talking a big game only to come and let you down when it counts. It sounds like they are being reasonable in that its not a given, but its also not a pointless exercise (assuming they only get paid on full offer or completion). 

I dont know what your circumstances are, if you have a fancy high spec german car on finance your probably not going to be getting 5.5x income, likewise if you have a football team worth of kids your expenditure will be through the roof. If you have no children and ride a pushbike with no commitments or debt, its far more likely to pass. 

I dont think the adverse is the hardest part to overcome personally. 
If you do not trust the broker fully, find another. If you do, ask them to go ahead. What is the worst that will happen? It declines, you are no worse off and you try another broker. Best case scenario, you get a DIP, keep your guard up as its still not a given but you have jumped the next hurdle and then keep your fingers, eyes and toes crossed.


I think thats the longest response I have ever written. Friday night eh! Rock n roll. 

JemmaSapph123

Good morning ACG.  Thank you so much for your reply, you have given me some hope 😊

Ahhh yes the joys of the London property market! Very scary indeed!  

You have given me some amazing insight in your answer, I can’t thank you enough!  It is also very very comforting to know that there is an adverse company that lends 5.5 x, I didn’t think they existed so I do have that as an option should the prime route not accept me, although I understand that given the higher interest rates this will test my affordability further!

Affordability wise, I don’t have any finance at all (luckily no high spec german cars 😃) No debts other than a credit card which I use for normal spending and then pay off in full each month.  No dependants.  I have a daughter who is 20 but she’s at uni with a job so all good on that front.  

Ahhh this whole thing is so stressful!  Thank you again for taking the time to help.  I will be sure to come back and provide an update to hopefully help others.

And talking mortgages on a Friday night is most definitely rock and roll!  I am living, breathing, dreaming mortgages at the moment! Haha!

Thanks again Xxx

JemmaSapph123

Sorry to add, but if we wanted to contact a mortgage advisor from this site, how would we go about that or is that totally against the rules?  I can see that we are not allowed to share personal information with each other?  Are we allowed to ask a mortgage broker from the site to help us with our mortgage application or no? X