DMP and Mortgage

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tequilabird
tequilabird Posts: 66 Forumite
in Debt-free wannabe
Hello All,
Currently chipping away at my debts by offering f&f settlements. Only a few left to go and I hope to clear them after payday at the end of this month.

My husband and I have just found out we are expecting #2 so we are going to be looking to move, which obviously means getting another mortgage. We currently have a mortgage and none of my priority debts have ever been affected by my DMP.

Are we going to struggle? I thought about approaching our current lender first, but if that fails, does anyone know of a company who may accept someone with bad credit history?

Tia :)
Lightbulb Moment: 18/01/2015 :j
Current Debt: 31,869.62 :eek:
DMP Start Date: 01/09/2015
DFD: TBC but sooner rather than later, I hope! :beer:

Comments

  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
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    my current mortgage lender was great when moving after clearing DMP and still had 3 defaults on file
  • tequilabird
    tequilabird Posts: 66 Forumite
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    That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    Hi tequilabird


    It is really likely your defaults are going to have some impact on you getting a mortgage. It's a good idea to get some advice from a mortgage adviser, particularly one with experience of dealing with people with adverse information on their credit file.


    There are people who get mortgages whilst on a DMP so hopefully you'll have some options. The Money Advice Service have some recommended websites to search for an adviser, you'll find those here https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice.


    Best wishes


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
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    tequilabird wrote: »
    That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?



    Ulster Bank a subsidery of RBS, we had to explain circumstances of getting into debt etc and reasons for moving and the underwriters looked at it all, even let us take negative equity with us
  • tequilabird
    tequilabird Posts: 66 Forumite
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    National_Debtline wrote: »
    Hi tequilabird


    It is really likely your defaults are going to have some impact on you getting a mortgage. It's a good idea to get some advice from a mortgage adviser, particularly one with experience of dealing with people with adverse information on their credit file.


    There are people who get mortgages whilst on a DMP so hopefully you'll have some options. The Money Advice Service have some recommended websites to search for an adviser, you'll find those here https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice.


    Best wishes


    Susie
    @natdebtline

    Thanks Susie.

    Effectively I won't be on a DMP when I'm ready to apply as I'm planning on clearing everything this month. However, I will still have defaults.
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • tequilabird
    tequilabird Posts: 66 Forumite
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    glentoran99 wrote: »
    Ulster Bank a subsidery of RBS, we had to explain circumstances of getting into debt etc and reasons for moving and the underwriters looked at it all, even let us take negative equity with us

    Thanks! Did you get a normal interest rate or did they bump it up to compensate for bad credit?
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
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    tequilabird wrote: »
    Thanks! Did you get a normal interest rate or did they bump it up to compensate for bad credit?



    Normal interest rate, a despite technically getting a 115% mortgage (with taking negative equity with us) we got 90% rates
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
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    tequilabird wrote: »
    That's the thing...I'm still going to have about 8 defaults for another 3 years. We literally can't wait that long for them to clear before attempting to get a mortgage, but at the same time I don't want to just get refused as it may affect us further. May I ask who your mortgage is currently with?

    Would waiting 3 years definitely not be an option? After all, there’s the whole of the pregnancy and then the baby should be in your room anyway for 6-12 months but you can definitely stretch that out. What’s your current setup it may be able to hang on until your defaults drop off and you’re in a much better position to move.
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