Advice needed for mortgage after DMP

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  • MBFF
    MBFF Posts: 14 Forumite
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    Could you explain how it would be clear? I was under the impression that after 6 years the debt no longer shows on the account. I have 1 debt in my closed accounts which is old car finance that shows as settled in 2013.

    None of my previous loans or credit cards show and these were all settled pre 2011.

    I check all 3 credit reports every month. I get that the rate would be higher for those just out of a DMP where the report shows old defaults, but am I wrong in thinking that there would be no trace of any poor credit history 6 years after the date of default?

    I'm not attempting to deceive lenders by hiding my past problems as I would use a broker so would expect them to steer clear of those I've defaulted with, albeit 6+ years previously
  • YHM
    YHM Posts: 650 Forumite
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    Sorry, just revisited the dates on your initial post.

    Generally DMP accounts have a DMP marker on, but if they are defaults from 2012, then in theory they should come off in 2018.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • MBFF
    MBFF Posts: 14 Forumite
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    Thanks,

    So in terms of applying for a mortgage, as we are looking at June/July and hopefully being in a position to go to a broker would high street lenders be viable and are we being realistic looking at 250k mortgages? The affordability calculator I completed on Nationwide (who I bank with) said the maximum lend amount is 290k, the information entered was completely accurate except for missing out what we currently owe as by the time we are looking at applying these debts would be cleared through the DMP.

    Thank you for your help
  • YHM
    YHM Posts: 650 Forumite
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    You could try, but the figures I mentioned before would be more realistic.

    Nationwide would need you to be DMP clear for 3 years at the point of application.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • MBFF
    MBFF Posts: 14 Forumite
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    Why 3 years? That's tarring me with the same brush a sa discharged bankrupt isn't it? Plus, how would they be able to tell I had been in a DMP?
  • YHM
    YHM Posts: 650 Forumite
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    I'm just giving guidance on respective lending criteria. If that is how they assess a DMP, then that is their call.

    It would be down to your broker to find a lender that wouldn't just tar you with any brushes. However, your broker will have a responsibility to disclose material facts and if the question is asked by a lender then it needs to be put in the application pack. I can't recall right now if Nationwide do ask specifically about a DMP or if they ask a wider generic question. I am just giving off the research tool I have access to in regards to DMP options.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    MBFF wrote: »
    Why 3 years? That's tarring me with the same brush a sa discharged bankrupt isn't it? Plus, how would they be able to tell I had been in a DMP?



    Because your meant to disclose, anything other is mortgage fraud and it is based on trust and honesty isn't?


    You are higher risk than someone without a DMP and adverse credit and therefore you will pay more in interest.


    Get a broker to get your own individualised options
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • MBFF
    MBFF Posts: 14 Forumite
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    If I am asked by a lender I will disclose, I've never said I wouldn't. What I'm saying is if the question isn't asked how could they tell I was in a DMP as it's not a formal arrangement and wouldn't show on any report? I've looked through lending criteria and can only see references to CCJs, DROs and IVAs. Is it a question that is normally asked?

    I'm still unsure how I would be charged more interest if I'm no longer on a DMP, all defaults are gone and my affordability is good. If I am not asked 'have I ever been on a DMP' its not information I would freely give to a lender, I would however give it to a broker so they didn't go direct to MBNA and Natwest who I defaulted with.

    I'm not trying to be deceitful, just wondering why I would be charged a higher rate of interest if my credit report looked in good shape
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    MBFF wrote: »
    If I am asked by a lender I will disclose, I've never said I wouldn't. What I'm saying is if the question isn't asked how could they tell I was in a DMP as it's not a formal arrangement and wouldn't show on any report? I've looked through lending criteria and can only see references to CCJs, DROs and IVAs. Is it a question that is normally asked?

    I'm still unsure how I would be charged more interest if I'm no longer on a DMP, all defaults are gone and my affordability is good. If I am not asked 'have I ever been on a DMP' its not information I would freely give to a lender, I would however give it to a broker so they didn't go direct to MBNA and Natwest who I defaulted with.

    I'm not trying to be deceitful, just wondering why I would be charged a higher rate of interest if my credit report looked in good shape


    They will know as they will run a full credit check and if you don't disclose any commitments or debts your paying off, your in trouble and a straight rejection potentially.


    Why would you not think a DMP is important to the lender?? you owe money, it's a debt, it's a monthly commitment just like people who pay for expensive rail season tickets of golf membership, it will all be taken into account for affordability, but more so for the DMP showing you were not good with your money hence the higher interest.


    Your credit report is not in good shape, the score means nothing, it's the history. If we both applied for a mortgage I would get a better rate than you because I have no debt, no DMP or CCJ's.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • MBFF
    MBFF Posts: 14 Forumite
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    As I've mentioned all the way through this thread, I wouldn't have a DMP. I would be looking to apply after the DMP has been cleared and all the defaults have been removed from the credit report (March 2018 for both)

    I've never referenced my 'score' only my history which wouldn't show any trace of a DMP or past credit problems. With no trace of a DMP or defaults on file would I still be looking at higher interest rates?

    I'm aware the DMP is a commitment that's why we are looking at only applying after this stops so we have an additional £400 of disposable income. In terms of not being good with money it was brought on by a redundancy rather than poorly managed credit, I would like to think the information I supplied shoes us being in a better place where money management is concerned
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