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Debt Management Plan

Posted on 2 July 2012 by ryan


My gf and i are currently saving for a house, we have about £10k saved currently.

I howeevr am on a debt management plan where i owe about £14k in total over 3 credit cards. These were all obtained at uni and i have arranged this DMP in 2007

My DMP look after my creditors for me and i pay £140 every month and have done since 2007 (barring 6 months in 2009 where i paid £50 due to being unemployed)

I should pay more to my creditors but instead have been saving hard for a house deposit with my gf.

Is it possible to get a joint morgage while on a DMP? My gf has a clean credit history and no dent at all.

I understand that 'pay back your creditors first' might be the obvious answer but bypassing that answer is it possible to obtain a joint morgage for a house of £120k max with my current DMP?

Also i am in Northern Ireland where house deposits are 10% minimum not 20%

Ryan

Regardless of where you live Mortgage Lenders are not going to like your debt management plan and you are not going to find it easy to get a mortgage.  It will all depend on what is showing on your credit file and whether or not any defaults have been registered.

I recommend that you get a copy of your credit file from one of the Credit Reference Agencies below and then make an appointment to see a local independent mortgage adviser.  They will be able to see exactly what in the way of bad credit is registered and then make an assessment on whether or not you have a chance of getting a mortgage.

 

 

Equifax Ltd

Credit File Advice Centre

PO Box 1140

Bradford

BD1 5US

0844 335 0550

www.equifax.co.uk

Callcredit Plc

Consumer Services Team

PO Box 491

Leeds

LS3 1WZ

0870 060 1414

www.callcredit.co.uk

Experian Ltd

Customer Support Centre

PO Box 8000

Nottingham

NG80 7WF

0844 481 8000

www.experian.co.uk

 

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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