Mortgage after DMP

chris163

Hi everyone,

Could anyone give me some advice please surrounding mortgages? 

My partner and I are presently in DMP Agreements. They have been running for around 4 years each and have a fairly small balance left. We now have funds available to us to clear them and have been exploring options for settlements/awaiting docs back.

By chance, unfortunately the landlord of our house (where we had a particularly cheap rent at near half market value!) has today given us notice as they have decided to sell.

We are therefore looking at options and one possibility is whether there would be any remote chance of us being able to get a mortgage?

With our DMPs cleared we feel we could raise a further £25-35k as a deposit (house cost in our area would be realistically £270-350k)

Salary wise we are both on reasonable incomes (£48k basic and £44k basic plus OT etc. ) with no other commitments. 

We are fortunate in one respect as our landlord is not making us move immediately, therefore we could likely stretch another 5-6 months here.

We would love to avoid putting a load of money into renting, but I just don’t know if it’s even worth exploring a mortgage and if it’s even possible/realistic….? We had hoped to stay in this house for another 2 years (my newest default is 4 years old so would have everything off my credit file by then). My partners is 3 years, but at least one of us would be clear!

Any advice on it would be really appreciated! 

Many thanks 

fatbelly

Probably a better question for the mortgage board but...

With multiple defaults on your file, settled or otherwise, you won't be getting the best deals

chris163

Thanks for the reply. Yes, that’s the downside. I guess from our perspective it would be nice to have some security, even at a slight cost increase. If it were at all possible, perhaps we could look to remortgage at a better deal later on? 

gwynlas

You could talk to a whole of market broker. You might have to pay a higher rate for a few years but clearing previous debts is  good sign and then you should be able to revert to standarrd rates without wasting money on rent. Take care that you do not revert to type and spend more than you can afford getting new house straight.