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garyrob
Starting Member

2 Posts

Posted - 29 Oct 2013 :  14:56:24  Show Profile  Reply with Quote
Hi all,

looking for a bit of advice.

I am currently in a DMP but recently lost my Dad and am in the process of selling the family home.

I will get 50% of this which after all the solcitor fees etc will leave me around 60,000.

It will cost me around 8-9,000 to fully clear my DMP

The houses I am looking at are around 70-80,000 so realistically I am looking at a mortgage around 20-30k. I dont want a massive monthly outlay though and can buy cheaper home outright if needed albeit the areas are not as nice.

I was thinking of renting for a year or two to help my credit rating or will my big deposit help me get a mortage straight away

Thanks in advance

Phil Corfield
Debt Management Expert



897 Posts

Posted - 29 Oct 2013 :  15:21:53  Show Profile  Reply with Quote
Hi and welcome to the Debt Management Plan Forum garyrob.

Sorry to hear of your father's passing.

You need to speak with a Mortgage Adviser, not a debt adviser. Your debts are due to be cleared, so your next step is looking at obtaining secured credit for a house. An IFA specialising in mortgages who covers the whole market is your next port of call.

Best of luck with your house search.

I am a CertDR qualified Debt Advisor and a Director of Bright Oak.
To contact me about a debt management plan or general debt advice please here:
   
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garyrob
Starting Member

2 Posts

Posted - 17 Nov 2013 :  17:41:04  Show Profile  Reply with Quote
Do you think renting for a while is a better idea, I have been in DMP for 4 years and have recently missed or made reduced payments due to circumstances. I want to build my credit score so that I can get a decent mortgage if required
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Debt Management Advisor
Debt Management Expert



366 Posts

Posted - 18 Nov 2013 :  09:03:45  Show Profile  Reply with Quote
Hi garyrob.

Just waiting might not be helpful, there might be actions that you need to take.

Once you've paid off all of your debts you'll want to check that your credit file has been fully updated by your creditors. You'll want to see balances set to zero and default notices marked as being "satisfied" etc.

Free trials with the credit reference agencies are widely available. We like the CreditExpert service which you can find out more about (and get a free trial if you wish) at:

http://www.debtmanagementplanforum.co.uk/freecreditreporttrial.php

Making good use of some credit will also help you to rebuild your credit status. Avoid payday loans though, many mortgage lenders see these as a red flag that someone isn't managing financially.

Once you've cleaned up your credit file show it to a mortgage broker. They'll be able to give you an idea of whether you can access a reasonable mortgage based upon your status at the time.

Is renting the best thing? It's hard to say, I think you'd need to get a good idea of what your mortgage options are before you can weigh that up fully.

I am a CertDR qualified Debt Advisor. I advise on all of the available UK debt solutions. For advice on all of your options please click here:
   
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Mortgagesteve
New Member

4 Posts

Posted - 27 Jul 2017 :  15:20:28  Show Profile  Reply with Quote
Hi garyrob,
Maybe a bit late but I know of 9 adverse lenders that would consider an application if you are in or have been in a DMP.
Regards
Steve

Regards,
Steve
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