Mortgages and DMP

[mnahmnah]

Hi

i’ll try to keep this short! But it is really stressing me out and we just can’t make a decision.

I currently own our house in my name only, as I bought it before i met DH. We desperately need to move house. We need more space and can pay off my debts, plus have a deposit to save to buy the next house. However, he has a debt management plan, so we can’t get a joint mortgage. Or certainly not for enough. We are considering moving into rented for two years, until his DMP is finished. Then apply for a joint mortgage after that.

we will ring fence the deposit from the sale of this house in an ISA so we will definitely have that when the time comes.

Has anyone experience of getting a joint mortgage after one person had a DMP? I have an excellent credit rating.

thanks!

Basically - is it a big risk us moving into rented, so should we stay put in a house I own and wait? But really struggle with money and space in the meantime?

If it was me, I'd 'ringfence' YOUR current property, watch all of Dana K White's YouTube's on decluttering (start with any that talk about 'containers') and stay in the house you OWN. Moving into rental is a waste of money,expensive & may push you into buying something unsuitable (if you get given notice or just get utterly passed of with renting).

It will take quite a few years for your DPs credit rating to recover. Do you want to be renting for 5+ years? I wouldn't.

Even if his DMP was paid off you’d still have to declare he had one to the mortgage company as some of them want you to be 4 years clear of one. You can’t not tell them about it either as his credit rating will take a long time to rebuild. So you could still be looking at adverse credit mortgages which are much higher rates. Stepping off the property ladder is a big risk and I just wouldn’t do it. You are in such a secure position right now don’t do anything to jeopardise it. Try to make it work.

I am no expert but renting is insanely expensive where I live which is why I had to take a mortgage in the first place so I could afford to live
i would stay in the house you can afford at the moment if I was you

It will go off his credit report as a debt after 5 years but will still show for another 5 years (from the date of the last reduced payment) , although banks will probably start to ignore it after 6 years or so. My ex did an IVA 7 years ago and has only last month been able to get a normal (not basic) bank account.

Stay in your house!!!

When the DMP finishes it'll take up to 6 years for his credit rating to fully recover - so it's unlikely he'll be in a mortgageable position for many years yet

Thanks all. Confirmed what I knew really. I just want to move so much. DC share at the moment and will need separate rooms as they get older. Money is very tight due to some debts I have too - these will be paid off in two years. Mortgage runs out in a year and scared of how much that might go up.

I had a DMP and I got a mortgage - once all the defaults came off. 6 years from the date the default is registered - but I made sure my dmp was finished before they dropped off. I just want to add I had no problem getting a mortgage

Hold on. When did he go into the DMP? My husband was in a DMP when we moved here. Was accepted by Santander with no problems. Have a chat with a decent broker and they'll be able to help.

@Gh12345 @Toooldtoworry

Maybe there is hope! I will ring an independent mortgage advisor.

He started the DMP two years ago I think. He says 2.5 years left. @Gh12345 Do you mean 6 years from starting it? Not sure what you mean by defaults dropping off. I don’t know the details of how it all works!