Exiting DMP before mortgage application

robinsonad86

Hi. Firstly unaware if this should be here or the mortgage section so please feel free to move if it is more relevant there. I have been in an active DMP for over 6  years and now looking for my first mortgage. I wish I had done more research into the effect the DMP has outside of the defaults as I would have gone self-managed sooner. The DMP has been well ran in terms of payments so no issues there.

My plan is to exit the DMP and go self managed as soon as possible as this should widen the lenders available to me when I come to remortgage. I have bid on a few properties which have been unsuccessful. I'm just wondering if I go self-managed now before I have a bid accepted (and who knows how long that will be) is it likely to cause any problems on a full application? I would still be able to provide a payment history for the DMP but would rather not do anything that is going to cause more problems at this point

sammyjammy

It won't impact your credit report at all, do you have a mortgage broker?  In your circumstances that would be a wise thing to do to avoid rejections which will impact your credit report.

GavCB

I'd make sure that you can get a mortgage before you start bidding on peoples property or it is a complete waste of everyones time. 

Rob5342

It won't make any difference whether you are self managed or have someone managing it for you, lenders will judge you based on what they see on your credit report. 

robinsonad86

sammyjammy said:

It won't impact your credit report at all, do you have a mortgage broker?  In your circumstances that would be a wise thing to do to avoid rejections which will impact your credit report.

Yes I have a broker as need one to approach the 2 or 3 lenders available to me in this situation

robinsonad86

GavCB said:

I'd make sure that you can get a mortgage before you start bidding on peoples property or it is a complete waste of everyones time. 

Thanks have a broker who come back with DIP  and confirmed meet all criteria

robinsonad86

Rob5342 said:

It won't make any difference whether you are self managed or have someone managing it for you, lenders will judge you based on what they see on your credit report. 

Being in an active DMP (with one of the charities) limits the number of lenders available to you. If it is self managed it isn't classed as a DMP and doesn't need to be declared as one. I wouldn't have thought this would make much difference but it does

Altior

robinsonad86 said:

Rob5342 said:

It won't make any difference whether you are self managed or have someone managing it for you, lenders will judge you based on what they see on your credit report. 

Being in an active DMP (with one of the charities) limits the number of lenders available to you. If it is self managed it isn't classed as a DMP and doesn't need to be declared as one. I wouldn't have thought this would make much difference but it does

How would the mortgage lender know you're on a DMP? It's an informal solution. Obviously you'd ideally need to apply to a lender that wasn't connected to your DMP. 

How is your credit report as of today? Any markers, if so which ones and what date? Another important variable is what level your unsecured debt is currently. 

They are rhetorical questions really, as you are probably better off posting this where the expert mortgage brokers post. The devil is in the detail of what is showing on your credit report, not that you are in a DMP (either formally managed or self managed), and your LTV, income, outgoings etc.