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DRO and savings. I'd like to start saving but I'm unsure whether I'm actually allowed.

(3 Posts)
mamasaddo Thu 12-May-16 15:43:27

I applied and received a Debt Relief Order over a year ago now. It means I am debt and (relatively) worry free. However, I would definitely like to get a mortgage in the not too distant future. I am extremely careful with money and have actually managed to start saving a little bit. So, basically can anyone tell me whether I'm actually allowed to save after a DRO? I know it stays on my file for 6 years but I am unsure about and struggling to find info on the period inbetween...

softcookies Fri 13-May-16 13:53:18

After discharge from a DRO you are free from your debts completely, so there is no reason why you shouldn't start saving. I went bankrupt and once my 12 months was up I was able to build up my savings and also inherited a property. As long as it is after the official discharge then you are fine.

It will be difficult to get a mortgage before the 6 years is up but not impossible, some lenders will consider it but best to go through a broker. I managed to get a mortgage 4 years after bankruptcy but the rates weren't the best to begin with, and I needed a big deposit.

mamasaddo Wed 01-Jun-16 00:33:54

I've JUST seen your response, I didn't think anyone was going to get back to me. Thank you so much, really appreciate it. It's helped clear things up!

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