Remortgage hell

Samlou99

Hello i am looking for some positive help. We have recently sold our house and had an offer accepted on new house. Our mortgage advisor has applied first off with our Current lender who said no. He then tried the Cumberland Building Society who are also looking like they will say no. The problem is my old dmp. Its full paid off but only recently. My Defaults are 4.5 years old. We have 50% loan to value and 40k inheritance to put forward. I am getting so stressed out as i feel that due to my history we will lose the house we love and not succeed in get the remortgage to move house.

ACG

We have done mortgages with ongoing DMPs. Satisfied and defaults from over 3 years ago, there should be a few potential lenders, I can think of 3-4 lenders we have used in the past. Are you sure the DMP is the only issue?

Im not here to slate other brokers, but if the only issue really is the DMP, is your broker maybe relatively inexperienced?

Samlou99

Yes its Definitely only DMP. It was only paid fully last week. So still not showing as satisfied on my records. I have no outstanding debts with anyone and savings. My partner has a very good history and no debts.

ACG

A DMP does not really show on your credit report. It would be the individual debts. But I understand what you are saying.

Generally speaking lenders want confirmation the DMP has been run satisfactorily for 12 or 24 months. They will want a statement or confirmation from stepchange/creditfix/whoever is managing the plan. There are lenders who will accept it if it is ongoing,

Just looking at the Cumberlands criteria, there is nothing specifically about a DMP but they do mention arrears/defaults. I assume you have seen your credit report?

Does it fit the criteria below? How things appear on credit reports can vary so much so I would not want to make any assumptions. It sounds like everything has defaulted but if you have any ongoing AR or status 6 markers that might throw you out.

If not, then realistically you are probably going to get declined as this is fairly standard with a lot of building societies. This would be classed as credit impaired with a building society and it "generally" rules you out. There are exceptions. I have never used cumberland though so cant offer you the reassurances you probably wont with regards to them.

However, I would say I think you will have options so try not to panic too much at this stage.

We expect applicants to:

• Be registered on the electoral register at their current address

• Have arrears no greater than 2 months, in the last 2 years (excluding mortgages, see 4.7.2)

• Have no current arrears• Have no current defaults

• Have not exceeded their overdraft or credit card limits by >£250

Applicants who have the following are within criteria:

• 1 or more CCJs the last 3 years to a Communications Supplier, Mail Order or Utilities with a total value of less than £500

• arrears of 2 months or more within the last 2 years to a Communications Supplier, Mail Order or Utilities are within criteria.

Samlou99

Yes the defaults that are caused by the debts i had in my plan. Admiral loans are the only one who has put a 6. What does the 6 mean? I will have to phone stepchange as i can no longer login to access my statements to get hold of 12 months. I never missed and payments with them. I have no overdrafts or outstanding debts. I guess i have been told it takes a week or so for my payment to reach creditors and debts are paid. The mortgage advisor knows all this. So has put this all forward.

ACG

Dont worry about the DMP not being technically settled yet. That is not a problem (unless their criteria was that it needed to be settled prior to application).

I am going to guess that if the application is declined it will be that Status 6. Its like a way of keeping the account open without defaulting you. There is potentially a way to get Admiral to change that, they should really have defaulted you I think, but that is going to take time to get them to do it and then for it to be reflected on your credit report.

You will still have options so dont panic. Building societies adverse criteria is quite stringent compared to banks due to their regulatory body.

Sorry, I am heading out now - Saturday night and all that. But dont let it ruin your weekend. At 50% LTV things need to be a lot worse to prevent you getting a mortgage. You'll be fine.

Samlou99

Thanks for your advice. Enjoy your evening.

jones_guitar

You can get a mortgage, but might be a higher interest rate. But, you need defaults to be more than 6 months old.

BTW, most mortgage brokers are crap if you have more of a complex case.

Samlou99

My defaults are over 4 years old.

ACG

https://forums.moneysavingexpert.com/discussion/comment/81969936#Comment_81969936

Thats not quite true.

However, less than 6 months and either the size of deposit needed (not an issue in this case) or the rates would put most people off.

Samlou99

Cumberland Building Society have requested last 12 months statement off StepChange. I always paid on time. Is this a positive that they are looking at this document?