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    • chrippy
    • By chrippy 6th Jan 18, 10:28 PM
    • 6Posts
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    chrippy
    Mortgage after DMP
    • #1
    • 6th Jan 18, 10:28 PM
    Mortgage after DMP 6th Jan 18 at 10:28 PM
    Hi all,

    My partner has been in debt management for a few years for defaulting on unsecured loans and has paid the off the majority of debt and has 700 or so left which will be paid off next week.

    She had a mortgage on a house with a ex partner which has just sold and released the money to finish paying off the debt and gives just over 10.000 deposit to put toward a new house.

    I have also saved a further 5,000 to add to the pot. We were going to wait a year or so to apply for a mortgage but a ideal house has just come up for 70,000.

    My partner earns 25.000 and has no other debts. Our 550 rent comes out of her account. And her other expenses are only minor .

    As I have a mortgage with a ex also but i cannot sell till next year does anybody have any idea if she would be able to get a mortgage on her own, even at poor rates?

    And if so what would be the best way forward?

    Any advice would be great
    Thanks!
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 10:43 PM
    • 6,609 Posts
    • 13,865 Thanks
    enthusiasticsaver
    • #2
    • 6th Jan 18, 10:43 PM
    • #2
    • 6th Jan 18, 10:43 PM
    A mortgage broker for people with poor credit history would be the first avenue to explore. If your partner is looking for a mortgage of 55k on a salary of 25k that should be ok on affordability but her credit history will go against her.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • chrippy
    • By chrippy 6th Jan 18, 11:03 PM
    • 6 Posts
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    chrippy
    • #3
    • 6th Jan 18, 11:03 PM
    • #3
    • 6th Jan 18, 11:03 PM
    Thank you for your quick reply! Yes that's what we would be looking for.

    When people say a broker for bad credit history is there anywhere/recommendations we should be looking for one or do we just pick one from the internet? There seems to be so many! How to choose

    We are in East Yorkshire so is it better to try find a local one?
    • ACG
    • By ACG 6th Jan 18, 11:29 PM
    • 17,033 Posts
    • 8,921 Thanks
    ACG
    • #4
    • 6th Jan 18, 11:29 PM
    • #4
    • 6th Jan 18, 11:29 PM
    There are quite a few issues here, the DMP is probably the least of them.

    The DMP in itself may reduce the options available - it will depend on how everything appears on your credit file.
    The purchase price being below 75k - not an issue in itself but most adverse lenders do have a minimum value of 75k.
    The deposit - probably going to need 15% deposit, not a million miles off, but she is not going to be able to use your savings as you will not be on the Mortgage.

    Definitely one for a broker, but I think you might find you are about 3-4 months too early. Although I could be wrong so dont be put off just yet.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
    • chrippy
    • By chrippy 8th Jan 18, 10:41 AM
    • 6 Posts
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    chrippy
    • #5
    • 8th Jan 18, 10:41 AM
    • #5
    • 8th Jan 18, 10:41 AM
    Thanks for the reply

    At the weekend we were talking to my partners parents about the situation and they kindly offered to get a unencumbered mortgage on their house to cover the 60.000 that we would need.

    They are both 61 and have final salary pensions from the police. They own their house and half of a second with another family member. Would this option be feasible at their age?
    • ACG
    • By ACG 8th Jan 18, 12:19 PM
    • 17,033 Posts
    • 8,921 Thanks
    ACG
    • #6
    • 8th Jan 18, 12:19 PM
    • #6
    • 8th Jan 18, 12:19 PM
    If affordability stacks up, it should be fine.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
    • chrippy
    • By chrippy 8th Jan 18, 12:46 PM
    • 6 Posts
    • 0 Thanks
    chrippy
    • #7
    • 8th Jan 18, 12:46 PM
    • #7
    • 8th Jan 18, 12:46 PM
    Sorry should have added their own house is worth around 250-300.000 and the half owned is about 110.000.

    Is this better for a broker or just to go back to Halifax where their original mortgage was from?

    Thanks again
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