Debt Relief Order
Debt Arrangement Scheme
Bank Loan Debt
Payday Loan Debt
Credit Card Debt
Store Card Debt
If you’re on a debt management plan you may think it’s impossible to buy your own home with a mortgage. However, there are ways you can get a mortgage if you’ve had a debt management plan in the past, or even if you’re still on one. This NDS advisory post gives you the lowdown on getting mortgages with an active debt management plan in place, and we’re more than happy to talk with you if you need further support.
If you’re thinking about taking out a mortgage, you will need to have a deposit and meet all the criteria of your mortgage lender. Therefore, if you do have adequate savings to pay the deposit on your new home, and your regular income means you can afford monthly mortgage repayments, you may be considered for a mortgage. Of course, your lender will investigate your credit history as part of the standard research carried out prior to granting any mortgage, so you do need to be upfront about your debt management plan in your application.
Notwithstanding all the above, it can be difficult to find a mortgage lender that will be prepared to lend funds to anybody with a debt management plan in place, but it’s not impossible!
The main reason it can be difficult to find a mortgage lender when you have a debt management plan is because lenders tend to get anxious when confronted by borrowers with poor credit. That said, the fact you’re on a debt management plan does mean you’re trying to get your finances sorted out.
Many lenders will refuse applicants with debt management plans, so if you’re already tried this route don’t be disheartened. You may need to approach specialist lenders. Many lenders and some of the more popular mortgage providers may decline applicants if they’ve had a debt management plan in place at any time in the past six years.
All the above can make it extremely difficult for borrowers to source mortgage funds on the open market.
The hard thing will be to find a mortgage lender prepared to offer funds to people with debt management plans. It often means getting in touch with the right brokers, who specialise in mortgage applications with this criteria. When you choose this route, you won’t be wasting precious time filling in applications for lenders with strict rules on lending and poor credit applicants. What’s more, if you keep applying for a mortgage in the hope you’ll find one that’s prepared to give you a mortgage, the continued credit searches will have a negative impact on your credit history and make it even more difficult to source funds in the future.
NationalDebtService.co.uk is an independent website created to help users find a solution to their debt problems. Our service is free to use and you are under no obligation to accept any of the recommendations you receive. An IVA (Individual Voluntary Arrangement) is subject to acceptance.
Debt write off applies to unsecured debts and on completion of an IVA. A debt write off amount of between 20% and 80% is realistic, however the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors.
Call charges may vary depending on your telephone provider. All calls are recorded for training and compliance purposes, but deleted after 6 months for non-customers in line with GDPR guidelines.
At National Debt Service, we do not give advice. On completion of our form, we will introduce you to one of our authorised IPA regulated companies. We use the contact details you have given us on the form to make this introduction. A debt advisor will contact you by telephone. During that telephone call, the debt advisor will discuss your options in more detail. During this call, and other subsequent communications, you will be dealing with a debt solutions partner and not National Debt Service. We may receive commission from the company we introduce you to.
Free money help and advice can be found at the MoneyAdviceService.org.uk