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Posted: Fri Jun 08, 2007 11:53 pm
by Jaclyn
I am currently paying off my debt, using a debt management plan. I currently owe £8k and it will take me until the end of 2011 to clear all debt. Does this mean I will not be able to apply for a mortgage? Will it effect my credit rating to apply for a mortgage? How do mortgage lenders view debt management plans? I currently rent a property. Please help? Many thanks,
Posted: Sat Jun 09, 2007 12:16 am
by MelanieGiles
Hi Jacklyn and welcome to the forum
You should have no problem in getting a mortgage whilst on a debt management plan, but may be charged a higher interest rate as a result of your debts. Applying for a mortgage is unlikely to affect your credit rating any worse than it probably already is.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
Posted: Sat Jun 09, 2007 11:27 am
by Welsh Boy
Jaclyn
Melanie is right, the lender would do a search on you and then find an appropriate rate and also state what Loan to value they would lend at, in other words how much you would need to be a deposit on the mortgage. You would find the rate would reflect your credit profile but the rates aren`t to penalising. Tony
Posted: Sun Jun 10, 2007 12:13 pm
by Jaclyn
Welsh Boy wrote:
Jaclyn
Melanie is right, the lender would do a search on you and then find an appropriate rate and also state what Loan to value they would lend at, in other words how much you would need to be a deposit on the mortgage. You would find the rate would reflect your credit profile but the rates aren`t to penalising. Tony
[:)] Many thanks for your response. I will feel more confident talking to a mortgage advisor and I guess I'll shop around and see who will give me the best interest rate for my current situation. Can anyone recommend a lender? Cheers
Posted: Sun Jun 10, 2007 12:37 pm
by MelanieGiles
You could do not beeter than the above poster, Welshboy, who is a specialist mortgage broker working in the adverse credit marketplace. He is completely independent of any banks or finance companies, and will look around for the best deal available to suit your circumstances.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
Posted: Sun Jun 10, 2007 7:17 pm
by Adam Davies
Posted: Wed Jun 13, 2007 8:46 pm
by Jaclyn
Thank you Melanie and Andy, I will send an e-mail to Welsh Boy.....fingers crossed [:)]
Tiger