Mortgage after a DMP NaughtiusMaximus

#1
I'm currently paying off a Debt Management Plan which I will finally clear in the summer. Later in the year me and my GF would like to move house, atm she owns a house with around 70k of equity and we're considering moving to a new house with a value of around 180 to 200k. My GF is medically retired so my salary is the main source of income. Neither of us have any CCJs or defaults on our credit file but on my file there are 2 debts marked as arrangement to pay which will be settled as part of the DMP.



What are our chances of being accepted for a mortgage based on the fact I'll have only recently finished paying off my DMP when we apply?



Thanks

#2
It sounds like you have been in the DMP a while. There should be options, possibly high street/possibly a little more but it should be doable, even now I think you would stand a decent chance with the deposit you will have.

#3
Thanks for the response ACG, I've been on the DMP since 2007. I was concerned the APs on my credit file would have a negative impact.



Looking at MSE's mortgage comparator, for a 130k mortgage on a 200k property there's a huge selection of mortgages with an initial interest rate of less than 2%. In your opinion is there a good chance we would be accepted for a mortgage of this level or do you think we'd have to resort to lenders who charge a higher rate?

#4
The APs will have an impact on the scoring of your application.



I think you need to get your credit reports infront of a broker with experience in adverse. There is a possiblity of high street rates but I am not sure I would be looking at the best buy tables as a starting point as there is a risk it could cloud your vision when looking at your options.



Does that sound really snotty? I have tried to re-word it a couple of times but I keep reading it back and it reads badly. I promise I am not sat in my high tower casting judgement.

#5
My understanding ACG is that most lenders wish to see a window of 3 years or so between the DMP ending & the mortgage application, is that correct?





Naughtius - see link below. Lots of good info on lending criteria & DMP's.





http://www.3-mc.com/compare-criteria/





I agree with ACG I think you need to get your credit reports in front of a broker with experience in adverse. They are the experts! Don't try and be too clever and do it all yourself, they are the professionals and will be able to help out.





Best of luck.

#6
The 3-mc site is quite good, but it only tells half the story. As an example, there are lenders on there with criteria that is a little more fluid than that makes out and also a little more rigid. For example, if everything is good and one little point falls out of criteria some of them may take a view.



Likewise, if everything hits their criteria limit they may decide it is too much risk, even if technically it falls inside criteria.

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