Hi we are currently in a DPP about 18 months/2 years in with 4 to go i think till it’s done. Both our credit scores are shot to bits with having it on our file which was to be expected but we are now financially in a much better position than when we entered the agreement and wondered what the chances of selling/remortgaging our home would be with the DPP still ongoing in order to clear it off for good?
Much will be determined by your deposit on the future purchase and the reason for requiring the arrangement. It is likely you will have more competitive options if you repay the plan as part of the process, although details will be critical here.
Whilst it may be an uncomfortable read you really need to ensure your credit files appropriately represent the times, dates and values of the issues. It is imperative to ensure in advance that you were specifically defaulted at the right juncture and that creditors haven't just been recording you as 6's as this will be make mortgage options somewhat more limited.
thanks for your reply! We basically got into the DPP as our monthly payments were too much to pay so we are paying less per month now but we didn’t miss any payments or anything before we entered the agreement the only missed ones were when the application was being processed they basically pause the monthly payments. I’m not sure what 6’s mean?
Ok thanks, from a lender perspective they are looking for a life event or loss of income rather than your payments needed to be reduced. The 6's are a reflection of ongoing missed payments on your credit file rather than you defaulting on a credit line (which is what happened)
We often see 6's holding up a potential mortgage application rather than stopping it as some lenders don't always represent the defaulted status appropriately.
If you are yet to obtain your credit files there is a multi agency report link below and shared frequently throughout the website.