UK mortgage advice · Active and completed DMPs
Mortgage with a debt management plan
A debt management plan can make getting a mortgage harder. Understand what needs checking, how your current payments affect affordability and whether applying now is realistic.
Count Ready can review your circumstances. Availability depends on lender criteria, affordability and the property. An enquiry does not guarantee a mortgage offer.
By Count Ready · Updated
Can you get a mortgage with a DMP?
It may be possible, but choices can be limited and borrowing may cost more. A debt management plan is an informal repayment arrangement, usually for unsecured debts. It is not a new consolidation loan or the same arrangement as an IVA.
The name of the arrangement matters. If you have an IVA, use our mortgage after an IVA page (opens in a new tab). If your paperwork names a different solution, including a Scottish Debt Arrangement Scheme programme, tell the adviser rather than assuming DMP guidance applies.
If your plan is active
Start with the agreed monthly payment, remaining balances, start date and recent payment record. Your proposed housing costs need to fit alongside the plan and ordinary household spending.
Tell your provider about the intended purchase or mortgage change. Do not cancel the arrangement to make an application look simpler.
If your plan has finished
Keep written confirmation of completion and check the status of the debts included. Explain whether they were repaid in full or settled under a different agreement.
Completion does not erase previous account history. A lender still needs to assess the records and your circumstances at the time of application.
Background: GOV.UK: debt management plans (opens in a new tab) · StepChange: DMPs and mortgages (opens in a new tab)
What needs checking before an application?
- The arrangement itself: who manages it, how long it has run and whether payments have changed or been missed.
- Individual credit accounts: balances, payment markers, defaults and any court judgments, including their dates and current status.
- Affordable borrowing: income, dependants, regular bills, debt repayments and the proposed housing costs.
- Deposit or equity: the amount available, its source and how much borrowing is needed against the property.
- The reason for the change: a first purchase, moving home, changing rate or raising additional money.
A displayed credit score cannot answer all of these questions. Read the underlying records using our credit-report guide (opens in a new tab); see separate guidance on mortgages with defaults (opens in a new tab) and mortgages with CCJs (opens in a new tab) where relevant.
Buying a home or reviewing an existing mortgage?
First-time buyers and home movers
Discuss eligibility before incurring avoidable application costs or relying on a particular borrowing amount. Include the likely costs of owning the property, not just the monthly mortgage payment.
For a move, ask your current lender about any early repayment charge and whether porting is possible. An existing mortgage does not automatically transfer to a new home.
Work through the DMP home-buying planning checks (opens in a new tab)
Remortgage customers
Separate changing deals with your current lender from applying elsewhere or borrowing more. Those routes can involve different checks; ask what applies to your account.
Thinking of using your home to clear the plan?
Adding unsecured debts to a mortgage puts the borrowing against your property. A lower monthly payment can still cost more overall if repayment lasts longer. Compare alternatives with a debt adviser before deciding to secure these debts.
If you are self-employed: prepare evidence of income as well as the plan. Accounts, tax documents and bank statements may be needed; the period and treatment of earnings depend on the lender. Explain recent changes in trading rather than assuming last year’s income tells the whole story.
Prepare for a useful DMP mortgage discussion
- Summarise the plan: provider, start date, payment amount and remaining balance, or the completion date.
- Gather available records: the latest plan statement, payment history and any completion or settlement confirmation.
- Set out the housing plan: purchase price and deposit, or current mortgage balance, estimated value and deal-end date.
- Explain your budget: income and commitments for each applicant, including any expected changes.
- Check the credit details: flag inaccurate balances or account statuses so these can be investigated with the relevant creditor or credit reference agency.
You do not need to upload financial documents to request a callback. Give a brief outline, then agree a secure way to provide evidence.
Questions about mortgages and debt management plans
Can I apply for a mortgage while my DMP is still active?
An active plan can restrict your options, but an application is not automatically impossible. A lender needs to accept the arrangement and assess the proposed mortgage alongside your remaining debts, regular spending and credit history. Check the position with your DMP provider and a mortgage adviser before applying.
How long after completing a DMP can I get a mortgage?
There is no waiting period that guarantees acceptance across all lenders. The completion date is only part of the assessment: individual account records, recent payments, income and deposit or equity also matter. Obtain evidence of completion and check the actual credit entries before deciding when to apply.
Does completing a DMP remove defaults from my credit report?
No. Finishing the plan does not automatically delete accurate defaults or other account history. Check whether each creditor has updated the balance and account status correctly. A plan completion letter and the information held on individual credit accounts are different pieces of evidence.
Is there a minimum deposit for a DMP mortgage?
There is no single deposit percentage that makes every DMP application eligible. The amount required depends on the lender, property and wider application. Keep purchase costs separate from the deposit calculation, and do not divert agreed debt payments or essential spending into savings without discussing your budget with your debt adviser.
Can we apply jointly if only one of us has a DMP?
A joint application normally involves reviewing both applicants’ finances and credit records. Provide the details of the plan alongside both incomes and commitments. Applying in one name changes ownership and affordability considerations and is not a simple workaround for the other person’s credit history.
Will asking Count Ready for advice leave a hard credit search?
A conversation is separate from a lender application. Before agreeing to any credit check, ask who will carry it out and whether it is a soft or hard search. A decision in principle may involve a credit check and is not a mortgage offer; the search type depends on the lender and process.
Discuss the plan before choosing a mortgage
Tell us whether your DMP is active or completed and whether you want to buy, move or remortgage. We can explain what needs checking before you make an application.
The initial consultation is free. Obtain the service scope and full fee details in writing before agreeing to chargeable work.
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