Hi I am currently in a DMP, we are looking to increase our payments to them and have it paid off within 2 years. At the same time we are currently saving (from our household budget) and are hoping to be in a position to put down a 10% deposit, the other factor is I will be 48 when we are looking for a mortgage, we have several defaults, no CCJ’s, currently renting from a housing association and have asked for my rent payments to be shown on credit reference agencies via credit ladder. What else can I do to try and improve and does any of the above preclude us from getting a mortgage?
Ok, the current pandemic combined with your deposit is likely to be the biggest barriers.
Whilst the rent showing on Credit Reference Agencies is a good idea, most specialist lenders will request proof of rental payments in any case. Please be careful that sometimes the amount expected from a Local Authority and the amount paid weekly/monthly can look like arrears so very prudent of you to get close to this in advance.
Your age will not be issue as if needed and applicable for your job role, many lenders now go to 75 years of age.
No one knows when loan to values in the specialist world will increase, but currently they do not go to 90% loan to value.
Whilst we expect these to increase over time, saving alongside clearing historic debt will certainly put you in a good place whether you would seek placement with a specialist lender or potentially a Building Society.
Lastly, may be worth considering the Help To Buy Scheme, as potentially you can achieve a mortgage subject to a 5% deposit with 20% equity loan provided from the Government.
Best of luck with the saving, sounds like you are doing many sensible steps towards rebuilding your credit files.