SPECIALIST SOLUTIONS
Mortgages With a Debt Management Plan (DMP)
Taking control of your debts with a DMP shows responsibility. We can help you find lenders who see it that way too.
Understanding Mortgages With a DMP
A Debt Management Plan (DMP) is an informal arrangement to repay your debts at a reduced monthly amount, usually set up with the help of a debt charity or a fee-charging provider. Unlike an IVA, a DMP isn’t a formal insolvency solution, but it will still appear on your credit file and can affect how lenders view a mortgage application.
Being on, or having recently completed, a DMP doesn’t rule out getting a mortgage. Many specialist lenders recognise that a DMP shows you’re taking a responsible, structured approach to managing your finances, and will consider your application on that basis, alongside your current income and circumstances.
What Lenders Look At
Whether the DMP is active or completed. Some lenders will consider applications while a DMP is still ongoing, provided payments have been maintained consistently. Others prefer to wait until it’s been settled.
Payment history on the plan. Consistent, on-time payments throughout the DMP are one of the strongest factors in your favour, showing lenders you can manage a structured repayment commitment.
Time since the DMP started or ended. As with other credit issues, the more time that has passed, the more options tend to become available.
Your deposit and current affordability. A solid deposit and income that comfortably covers both your existing DMP payments and the new mortgage will strengthen your case.
How We Can Help
Lender appetite for DMPs varies more than almost any other credit issue — some will only consider a completed plan, others are comfortable with an active one, and criteria on deposit and time since can differ significantly. We’ll showcase your application in a way that highlights the positive steps you’ve taken to manage your debt, and match you with lenders whose criteria genuinely fit your situation.
DMP Mortgage FAQs
Can I get a mortgage while still on a DMP?
Yes, in some cases. A number of specialist lenders will consider an application while a DMP is still active, provided you’ve maintained consistent payments and can demonstrate the new mortgage is affordable alongside your existing commitments.
Is it easier to get a mortgage after the DMP has ended?
Generally, yes. Once a DMP has been completed, more lenders become available and rates are often more competitive, particularly once some time has passed and your credit history since shows steady management of your finances.
Does a DMP affect how much I can borrow?
It can. If you’re still making DMP payments, lenders will factor those into their affordability assessment alongside your other outgoings, which may affect the amount you can borrow. This is something we’ll work through with you as part of the assessment.
What deposit will I need with a DMP?
Typically 15% or more, though this varies by lender and depends on whether the DMP is active or completed. Some lenders may ask for a larger deposit if the plan is still ongoing.
Ready to Explore Your Options?
Get a free, no-obligation assessment of your mortgage options, whether your DMP is active or already completed.