Advice on remortgaging with debt plan

alexh9999

Hi there 

Just after a bit of advice
We are going to sell our current house and remortgage on the new one 
My partner is on a debt plan right now and this is due to end in May this year. 
If we decide to move in say September this year and we do a joint application, would they reject us because of her debt plan? 
Her credit score is very poor but as she is working full time our affordability is decent enough I think.

Also would it be worth it to pay the debt plan early to improve our chances of a joint application?

Thanks

fatbelly

Get a copy of her credit report. Actually, get all three. See what is on there.

A Debt Management Plan does not create a mark itself but there may be defaults if these happened less than 6 years ago, or arrangement markers if she rushed into a plan.

Both these will affect creditworthiness but the devil is in the detail

alexh9999

Hi yeh I'd expect it to make a mark 
She only had it setup 3 years ago. Done well to pay it off so soon but just wondered if banks would still do credit checks on both of us even if our affordability is OK. Around £60K a year 
Would they prioritise the poor credit for her?
Thanks 

ACG

Banks will do credit checks on you both even if affordability is flying through. 
It really depends on how everything appears on your credit report and who you apply to. 

Some lenders are fine with DMPs, some are not. Probably best to use a broker with experience in adverse though. 

MWT

I would worry less about her 'credit score' as that is just a synthetic score created by the agencies and of no direct interest to the lender, think more about the actual events on her file, until you check that you can't really see what you are up against.

... and yes, even with good affordability the lender is going to look at the credit file for both of you to see what is there...

No19v87

alexh9999 said:

Hi yeh I'd expect it to make a mark 
She only had it setup 3 years ago. Done well to pay it off so soon but just wondered if banks would still do credit checks on both of us even if our affordability is OK. Around £60K a year 
Would they prioritise the poor credit for her?
Thanks 

Any new application would include a credit check, only way to avoid that would be just choosing a new fixed rate with your current provider on the same terms and same property.

If you are moving, no way to avoid a credit check.

I’m not expert enough to give a view on your chances but you’ll certainly need to provide more info for others to do so.

You’ll be best off speaking to a broker who specialises in adverse credit, sharing a copy of your credit reports with them.

Hoenir

alexh9999 said:

We are going to sell our current house and remortgage on the new one 

If you've cash savings clear the debt plan ASAP. The inherent danger is that an underwriter may question the fact that you used the debt plan as an interest free loan.  Time heals credit history.  

Brie

And ensure that you both are registered to vote if possible.  Makes you look nice and stable.  

alexh9999

OK great. Thanks everyone! Will get it paid off ASAP and then speak to a local mortgage adviser