DMP and mortgage
LMJ10
Posts: 225 Forumite
Hello, we are currently trying to seek a mortgage (to move) or remortgage.
I have took advice from a MA but have been reading some criteria on precise mortgages website about DMP’s.
I am with stepchange and never missed a payment but recently there has been reduced payments - on advice of stepchange. Will the reduced payments go against us?
Or would coming out of the plan be better for us as in 6months would I even have to declare i was in a plan?
Any advice would be grateful.
I have took advice from a MA but have been reading some criteria on precise mortgages website about DMP’s.
I am with stepchange and never missed a payment but recently there has been reduced payments - on advice of stepchange. Will the reduced payments go against us?
Or would coming out of the plan be better for us as in 6months would I even have to declare i was in a plan?
Any advice would be grateful.
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Comments
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I stopped my debt plan and went it alone, screwed myself over by doing it as lenders want to see 12 months of consistent payments on a DMP.
Lenders also deem the DMP to have failed if you stop the one you were doing, to do it yourself.
You can't hide a DMP or payments to creditors as they show on your bank statements.
Lenders also like people to be 12 months clear of their last DMP payment.
Speak with a good independent whole of market broker before making any changes to your DMP and to see what your options are.Mortgage started 2020, aiming to clear it in 2026.0 -
MovingForwards wrote: »I stopped my debt plan and went it alone, screwed myself over by doing it as lenders want to see 12 months of consistent payments on a DMP.
Lenders also deem the DMP to have failed if you stop the one you were doing, to do it yourself.
You can't hide a DMP or payments to creditors as they show on your bank statements.
Lenders also like people to be 12 months clear of their last DMP payment.
Speak with a good independent whole of market broker before making any changes to your DMP and to see what your options are.
Thanks for your reply but i have been told lenders want to see 3 months bank statements - if I waited 6 months no payments will ever show up on my bank statements?0 -
if I waited 6 months no payments will ever show up on my bank statements?
If you have reduced your payments to your lenders has your financial position has become weaker somehow? If you intend to stop your DMP, have you cleared your debt with F&F or are there debts still to be paid?
Lenders expect a certain amount of information like bank statements. You would need to check the terms of any loan very, very carefully to see that there is no requirement to advise the lender of facts that might influence their decision.Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
The law is like an ocean - have a swim but don't drown.0 -
S/he has another thread explaining circs for reduced payment.
Supposing the lender comes back and says they want 12 months of statements?
But the above is irrelevant as you are on about doing the DMP yourself, so payments will show anyway.
Lenders have questions asking about arrangements with creditors, IVA etc. Are you looking to lie and say no? Are you intending to lie to your broker?
You saw on another post an adverse lender wouldn't give a mortgage to a different member.
Just speak with a good broker and see what your options are; one had already commented in your other thread.Mortgage started 2020, aiming to clear it in 2026.0
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