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dmps and mortgages

(8 Posts)
cashmoney Sat 09-Apr-16 20:31:11

Hi just wondering if anyone can give me a bit of extra info about this.
I used to be horrendous with money and got in a lot of debt as did dh.

Once we got engaged we decided to get our acts together and each entered into a dmp to clear our debts so we could start saving for a future.

For a variety of reasons I regret the dmp and feel that I was badly advised but that's a whole other thread!

Anyway, it's been 3 years since we paid of all of our debt and we've since saved for our wedding and now saved a 5% deposit for a home. My question is this - are we likely to be accepted for a 95% ltv mortgage 3 years after ending a dmp or should we keep saving to get a larger deposit?

I'm desperate for my own home but feel that by the time we save a bigger deposit the dmp will have dropped off our credit file anyway and by that time we would be eligible for a 95% mortgage!

Thanks in advance to anyone who can help!!

FlappyRose Sat 09-Apr-16 20:35:01

What does your credit file show? Are there any defaults or CCJs?

FlappyRose Sat 09-Apr-16 20:35:32

Oh and congratulations on paying off your debt!

cashmoney Sat 09-Apr-16 20:48:16

I just use clearscore and it doesn't show any defaults or ccjs. I'm not sure about dh's though.

noisytoys Sun 10-Apr-16 06:14:12

Apply to a mortgage broker. I was in a lot of debt and wanted to remortgage to pay off a load of debts. The best they could do was a 75% LTV and very few lenders lend to people either in debt or with a history of debt. I got a mortgage with Natwest.

cashmoney Sun 10-Apr-16 08:58:20

Sorry noisytoys do you mean you got 75% ltv after you went through a mortgage broker or 75% was what you got with a broker?

noisytoys Sun 10-Apr-16 14:00:09

A broker found me a 75% LTV deal. It was enough (just) to pay off the outstanding mortgage and clear the debts.

19lottie82 Mon 11-Apr-16 08:58:22

I think anything like that takes 6 years to drop off your credit history. You need to check yours and see if there are any "nasties" on it.

Also, I also THINK that 5% mortgages are reserved for those with the best credit histories, which I'm guessing if you have only come out of a DMP, won't be you.

But as I said, I'm not 100% certain of these statements,so as you have already been advised, check your credit history, then make an appointment with a mortgage broker.

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