Hi - hopefully you can provide some advice for me..
Currently in a debt management plan since April 2017 it's for a large amount (around £18k remaining) and there are multiple defaults which were registered more than 3 years ago. Wife has a reasonable credit record with no adverse.
Pre-pandemic, a mortgage adviser got us a DIP at 90% LTV from Kent Reliance but they have now pulled their debt management plan support. Are there still any lenders willing to do mortgages for those in an active DMP without asking for 25% deposit? Or is it best to wait until post-pandemic?
Thanks in advance
Hi, thanks for getting in contact.
Whilst it's not an exact science and some lenders have more grey areas than others I would expect 90% or even 85% to be unlikely for the next few months until we start to see some normality in the market again.
These cases always come down to the finer details however I believe your best case scenario would be a 20% deposit and worst case 25% as you have mentioned.
Alternatively you could explore the option of the Help to Buy equity scheme as that could facilitate a smaller deposit.
Thanks David - we did look at HTB but in the area we are looking there is currently only one new build development and they aren't suitable. From what I can gather the rates are also pretty high on the 25% and 20% mortgages that are available as well which adds complexities for affordability. Thanks for the advice.
Hi, we are going through the same as you and was told at least 20-25% deposit is needed. We are trying the HTB but the rates are still 4.5% 😳