Get a mortgage with Debt Management Plan

Posted on 9 February 2011 by claire


Would I be able to get a mortgage if I'm on a debt management plan?  I currently pay rent, but am wanting to buy.  We have a combined income of around £24,000 p.a.

Claire,

A Debt Management plan will exclude you from nearly every Lender at the moment and there are very few deals around. If the arrangement has been running for over 2 years and you have kept it up to date it may be possible, but you would need a joint income of £25,000. This can include any overtime, bonuses or guaranteed salary allowances but not any benefits or Tax Credits.

You will also need to have a substantial deposit of around 25% of the purchase price, with additional funds to help cover legal costs, Stamp Duty and valuation fees.

I recommend that you speak to a local independent mortgage broker about your situation.

Peter

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