Will DWP dept management and mortgage

Lukikas

Hi. I have DWP dept management payments on my bank account from Universal Credit overpayment. Will it affect my chances of getting a mortgage offer. My Credit score is excellent, I have never missed a payment.

Brie

Forget the credit score - no one sees that except you. More important is your credit history which the banks will look at.

UC doesn't show on your credit history - at least I've never seen it on any I've looked at! So it will just come down to what you can prove your income and expenses are. If with UC and whatever else you make enough then you may be a candidate for a mortgage of some sort.

But look and see what else shows on your credit history. Any CCJs? Do you have lots of other credit - phones, broadband, TV packages, motor insurance, credit cards, loans, catalogues? All those things should be tidied up before thinking of applying.

Are you registered to vote? If not, register asap as that can help you look more stable.

If you apply for a mortgage at the same bank you use for normal use or with whom you have a credit card they will look at those records as well to get a full picture of your credit worthiness.

elsien

They will also look at your affordability – income and outgoings and that will also affect whether/how much you can borrow.

Lukikas

Thank you, Brie. No longer on universal credit since 2024. The overpayment was paid back in full. No CCJ's. I have always been registered to vote.

ACG

Its possible it will result in a question.

Depending on how much we are talking and how long you will carry on paying it for, it might have an effect but that doesnt mean it will be a problem.

I have come across this a few times, we normally just put a quick note on the application to cover it off from the outset and all have been fine. But if it will carry on for 3-6 months plus, then you might need to put it down as a commitment.

Brie

https://forums.moneysavingexpert.com/discussion/comment/81931978#Comment_81931978

Right so it's all down to your incomings and outgoings. If you're making oodles (like we all wish!) and have relatively few debts then it's likely to be fine. Your DWP payments will be considered as any other debt though they may be cautious because it's relatively recent that you've stopped being eligible.

I was lucky when I was looking to move and was considering my mortgage options that someone from one of the high street banks was willing to have a look at my finances and advise me in general what I should do. She was very clear that their bank wouldn't consider me because I had too much debt and suggested that I port my mortgage instead which worked out just fine. It was a very positive chat for me - I don't know how often or how willing your own bank might be to do something similar. Your alternative might be to talk to a mortgage broker.

kingstreet

What do your statements actually say. Typically it's NDDS and that's about it.

A lender will ask for details of what is owed and how long it will take to repay. If the liability is larger, you may find your affordability reduced when the monthly cost is taken into account.

Lukikas

https://forums.moneysavingexpert.com/discussion/comment/81934016#Comment_81934016

It says "DWP dept management" there is nothing owed anymore, I paid it all of.