Mortgages on debt management

klh_110

Hi

I am thinking about getting a mortgage and wanted to consolodate current debt I have before doing so. I have no problems in making my monthly payments and am up to date on payments except for an issue I had with my CC company about non-receipt of statements - this went on for 3 months and finally when a statement was received a payment was made.

I have been refused a loan for £7000 which would manage everything I owe which is: 1 loan £4800 oustanding
1 credit card £819 oustanding
1 Catalogue £300 oustanding
1 Overdraft £1870

I have access to my credit files (all 3) and my credit score is low possibly due to a late payment log on my CC account - other than this I don't have any bad debt/CCJ's/Arrears etc....

If I can't get a loan - what are tha chances of a mortgage?

If I decided to go under debt management - would this affect my chances of a mortage?

I am very confused and would appreciate any advice anyone may have....

I am desperate to sort this out!

Conrad

Yes, if you opt for a DMP a mortgage will be less likely.
A DMP is a wrapper that enables you to pay less on debts than the sums you originally agreed to pay when the debts were taken out.

A mortgage lender will therefore view you as a late payer. Furthermore they have to lend responsibly but for clients that have a DMP it becomes debatable as to whther they should then grant a mortgage offer as this places much more debt around the applicants neck.

Sometime DMP do not show up and people have sucesfuly been accepted for a prime mortgage, but that would be a chance you take.

ianian99

why dont you clear exsisting debts before getting deeper in and could you really afford more debt