I have been on a DMP for two years now, total debt now outstanding of £20k. I was very very silly with money in my early twenties and am now suffering for it.
My DP purchased a house last year as a first time buyer alone as there has been inheritance passed down. Although DP earns less than me they managed to secure a decent mortgage due to a large lump sum deposit. At this point we were not living together.
We now want to buy a new house together. As I earn a lot more than DP if I come in on the mortgage we could borrow more and can easily afford repayments.
All of my accounts are now in default. Default dates are about 2 years ago. Only a few of the debts in the DMP are clearred the rest are outstanding.
I have a lump sum I might be able to use to pay off the debt so that I have all accounts in default but with a £0 balance.
What is the likelihood of us being able to get a mortgage in this state? Reading up it seems slim as none of my defaults are >3 years old. DP’s score is perfect and we would have nearly a 40% (maybe 50% deposit). Affordability isn’t an issue as our combined salary is £70k a year.
I feel like this is ruining our relationship as we cannot move forward due to my stupidity in my younger days. Paying off more on my DMP at moment not an option due to high city rent I pay. Any advice?