Get a Mortgage After Bankruptcy

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Is it possible to get a mortgage while on a debt management plan?

Yes it is, although it is very dependent on your unique circumstances. One of the most essential considerations for lenders when considering a debt management plan is whether the DMP is still current and, if not, how recently it was satisfied.

If you are already managing your debts through a DMP, your options will be far more limited because the majority of lenders, particularly high street banks, would not consider an unsatisfied DMP.

Whatever the present status of your DMP, it’s vital to remember that there will be lenders willing to consider your mortgage application; it’s just a matter of finding them – ideally through a specialised broker – and maybe accepting less competitive conditions.

How a broker can help you get a loan even if you have bad credit

If you have a debt management plan, it’s more important than ever to get help from a broker who specialises in bad credit mortgages. If you go it alone without knowing the best lenders for your needs, you could find yourself being declined with multiple lenders which may harm your credit file even more.

A mortgage broker for people with bad credit will understand how complicated your situation is and know what criteria different lenders will use to judge your application. They will also have relationships with specialist lenders who might be hard to get in touch with otherwise. A DMP mortgage is often more expensive, but a broker will do their best to find you the best deal and keep you from paying too much just because you have bad credit.

Remortgaging with a debt management plan

The procedure for remortgaging with negative credit is very identical to that of getting a new mortgage, with the possible exception of a few minor details. A product swap with your current lender could be one option, since they will already know you and your financial situation and may be more willing to accept the DMP because of the established relationship.

Having a low loan-to-value (LTV) ratio is viewed favourably by lenders even if you have negative credit, so having a lot of equity in your property is a big plus. If you are current on your Debt Management Plan (DMP), you may be able to use the proceeds from a remortgage to pay off any outstanding obligations and start fresh. If you’re able to remortgage, your other monthly repayment obligations will be decreased, which may be taken into account by lenders when determining your loan’s affordability.

Getting a buy-to-let mortgage with a DMP

Borrowers seeking a buy-to-let mortgage using a DMP will be subject to the same regulations as homeowners, but there are still many lenders who will consider them.”

You can lessen the blow of your DMP by demonstrating your credentials as a landlord, the strength of the market for comparable properties, and the reliability of your projected rental revenue. Speak to our specialists who are experts on helping those with poor credit get buy-to-let mortgages.