Getting a loan with a DPP

windswept2019

Hi there
I'm currently in a debt payment plan and want to get it paid off asap to sort out my credit score to allow me to release some equity in my house (it's quite complicated, so a loan is the only option)...  Has anyone successfully applied for a loan while in a DPP and with whom?  
I don't want to affect my credit score further by applying without assurance that I'll be approved.
Very many thanks, Cristina

MattMattMattUK

windswept2019 said:

Hi there
I'm currently in a debt payment plan and want to get it paid off asap

That part is a good idea.

windswept2019 said:

to sort out my credit score

Your credit score/rating is entirely meaningless, ignore it, forever.

windswept2019 said:

to allow me to release some equity in my house

When you say release some equity, do you mean remortgage with additional borrowing, equity release, second charge loan, or something else?

windswept2019 said:

(it's quite complicated, so a loan is the only option)... 

It probably is not as complicated as you think. As an example selling would also be another option.

windswept2019 said:

Has anyone successfully applied for a loan while in a DPP and with whom?

Probably from the local leg-breaker yes, from a legitimate regulated lender, highly unlikely, it would be in breach of the guidance and legislation that lenders have to follow.

windswept2019 said:

I don't want to affect my credit score further by applying without assurance that I'll be approved.
Very many thanks, Cristina

Just again, for absolute clarity, your credit score is entirely meaningless and made up. Lenders cannot see it, it is made up for marketing purposes by the CRAs so that that they can attempt to earn commission selling you financial products. 

Your debts not being paid according to their contractual terms is what will stop you getting a loan, that will be the same regardless of any score. 

windswept2019

MattMattMattUK - I am so very grateful for your response.  

I have a very complicated set of circumstances and appreciate all the help you can offer.

So, I have a DPP thanks to a nasty divorce.  My beloved dad also died, and left me a modest inheritance, which I used to pay cash for a half share in a house I could call a home for my kids and I - I did not sort out the paperwork at the time.  My brother was supposed to take on the other half, but it took him 5 years to cough up - and when he did, he raised a mortgage on the house with his (now ex) girlfriend (only a portion of the value) and ended up taking the title deeds in their name.  Even though I have lived here and made this home for 7 years (and invested a LOT of money in the place) there is nothing to say I have any claim over it.

Obviously I need to change this.  And we need his ex off the deeds (she has no interest in any monetary gain from this, bless her.).  However, between my poor credit and his lack of income I seem to be stuck.  He does not have any official earnings.

When I approached a solicitor he told me to see a mortgage advisor.  Mortgage advisor confirms I can borrow 4x more than I need - IF MY CREDIT SCORE IS SUITABLE - but going into it with my brother (whose credit is good but affordability is bad) we can't even raise half of what I need.

I am really stuck!  The only way out that I can see is if I pay off my DPP, bring my credit score up and then release the funds.

I'd really appreciate any words of wisdom you can offer!