Getting a mortgage with a DMP

[tonyharrisonboosh]

Hello all,

I have been on a DMP since 2013 and will be fully paid up in a couple of months. I have never missed a payment and wasn't in arrears prior to taking out the DMP. I just found myself struggling to feed and clothe myself after I had paid all my bills.

I am much better with money now and my partner and I are looking to move to a bigger house. We currently live in a small house that my other half owns outright. We would have the funds from the sale of the house as a deposit. I am concerned that the fact I've had a DMP will ruin our chances of getting a mortgage.

One of the questions I saw on an AIP form was 'have you entered into a DMP in the last six years'. As I took out the DMP over eight years ago would that still harm my chances?

I am not trying to paint my previous failings in a better light and will be totally honest but just want to see if it's a lost cause and of there is anything chance we will get a joint mortgage?

From what I understand most mortgage lenders would want you to have completed your DMP for at least three years before applying for a mortgage. Especially in these times of stricter lending. I'm pretty sure none of the High Street lenders would accept someone currently on at DMP.

But they are probably other lenders who will consider someone in your circumstance. You'll probably want to be speaking to a whole of market broker or one specialising in adverse credit.

Thank you for your advice. Makes total sense.

It would probably be best if my partner just went for a mortgage on his own. I wouldn't want to saddle him with an adverse credit option if he can get a better deal on the high street!

Best to talk to a broker and get a copy of your credit file once your DMP is completed to see exactly what it says. A broker will have an idea which lenders will accept you.

If you have a good deposit and are comfortable on affordability, the deal you qualify for might not be too awful - when I had adverse credit there was different bands of adverseness - light, medium, severe and the light to medium products were only a fraction of a percentage higher than standard products.

Or there is the alternative of the mortgage only going on your DPs name if it makes it too expensive to include you, but he'd then have to make the affordability on his own and your income couldn't be included.

Yes speak to a broker. You also need to know what is on your credit report. If there is any trace of the dmp on there (defaults, CCJ’s etc) you will struggle with the mainstream lenders.

Some lenders ask if you’ve ever been in a dmp etc, some ask in a different way for example Halifax ask if you’ve entered into one in the last 6 years.

OP, I was only 2 years into a DMP and got a mortgage with NatWest. Tried to do it alone and pretty much got laughed out of most places. Used a brilliant - albeit - pricey broker. Let me know if you want me to PM you the details.

Oh yes please @YorisBohnson - that's given me a glimmer of hope!

Ha I got your name horribly wrong @JorisBonson - yes please to the broker info! Thanks so much

Sent!

From Yoris

I work in a mortgage brokerage which is whole of market (not an advisor) but eighteen months ago we were discussing moving but thought we couldn't because my husband was in a DMP. I enquired and as it turns out Santander would look at it, and actually offered our mortgage November 2019.

Definitely talk to a brokerage like John Charcol, Mortgage Advice Bureau or L&C (although I think L&C are more vanilla).

@JorisBonson

Sent!

From Yoris

Thank you so much

I think it is six years it can impact it so yours might be Ok now. In general credit terms. I use Credit Karma site which is useful to look at credit rating and history in general but the broker may give more details as others have mentioned specific to you