Mortgage with a debt management plan

Mortgage with a Debt Management Plan – There are options available either in or after a (DMP)

Even if you’ve had, or are currently in, a Debt Management Plan (DMP), there are plenty of mortgage options available. You may even be able to save money or raise a lump sum to clear the DMP.

Mortgages available when the Debt Management Plan (DMP) has been active for 12 months (with satisfactory payment history)

  • Purchase and remortgage options available
  • Eligible for Help-to-Buy and Right-to-Buy schemes
  • 95% mortgages available after you’ve been in your DMP for 3 years

Mortgage with a DMP FAQ

Getting a mortgage while in a Debt Management Plan, or after a DMP can seem like a daunting task, but it could be possible. It’s likely you’ll struggle to find a highstreet lender who will consider your application, but at Clever Mortgages our expert brokers work with specialist lenders, experienced in helping people with bad credit find their perfect mortgage.

Even if you’ve had, or are currently in, a Debt Management Plan (DMP), there are plenty of mortgage options available. If you have enough equity in your home, you could look at a remortgage, allowing you to free cash tied up in your home and potentially raise a lump sum to clear your DMP. It’s unlikely highstreet lenders would accept an application with a history of bad credit, but our brokers work with specialist lenders who consider all applicants.

If you’re a homeowner and want to free up equity without leaving your current mortgage, you could consider taking a second-charge mortgage against your home to free up equity tied in your property. This could allow you to access a lump-sum to clear your DMP while keeping your current mortgage intact.

As second-charge mortgages are secured loans, the risk isn’t as great to potential lenders, increasing your chances of approval and could even gain you access to better deals and products.

A DMP doesn’t actually get recorded on your credit report as a sole record, but any credit issues surrounding it will be. It’s likely any missed payments and defaults you’ve had leading up to your DMP would have caused a drop in your credit score, additionally the reduced repayments you make during your DMP will also make an impact. Missed payments and defaults stay on your credit report for 6 years, but accounts you have with creditors included in your DMP could be marked with a ‘DMP flag’- this shows that creditors are aware of the lower payments and have agreed to this.

For free initial advice from our qualified mortgage brokers about a mortgage with with a Debt Management Plan, call 0800 197 0504 or click below to request a callback at a time to suit you.

Case Study

Allowing one couple to remortgage even though one of them was in a Debt Management Plan (DMP)

At Clever Mortgage we helped them to:

Settle Mrs B’s DMP with the new mortgage Exit their current lifetime tracker mortgage and onto a better deal Secure a fixed rate of 2.10% Save almost £500 each month on mortgage and debt repayments

We were approached by Mr and Mrs B as they wanted to consolidate their debts by taking out a new mortgage on their home. Mrs B was in a DMP at the time though and her husband had previously been in an Individual Voluntary Arrangement (IVA).

Mr and Mrs B were unsure as to whether they could remortgage so we were pleased to help them not only consolidate their debts and reduce their monthly payments, but also get on the right track to rebuilding their credit scores.

 BalancePaymentRateProductTerm
Previous Mortgage£61,000£4901.25%Lifetime tracker12 years
Previous secured loan£43,000£43610%SVR12 years
Previous unsecured debts£44,300£657VariousVariousVarious
New Mortgage£150,000£10972.10%5 year fixed rate13 years

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6 Great reasons to choose Clever Mortgages

Specialists in bad credit

Every member of our team is trained in bad credit situations and know how to find the right solutions for customers – helping them get the mortgage that’ll get them back on track.

Over 100 lenders

The number and quality of lenders we work with means we have access to a diverse spectrum of best-rate deals. The lenders we use means we have all areas covered – even for those in particularly niche circumstances.

Not every case is the same

As each customer’s situation is unique, we take the time to understand your situation, and we carefully assess your goals and how we’ll make sure the mortgage we get helps you to achieve them.

Access To Exclusive Rates

The relationship we have with our lenders means we have access to products and deals that simply aren’t available to customers going direct. This is true particularly for those in adverse credit situations.

Offering the best support

We know that buying or moving house and getting a mortgage is stressful, so we do our upmost to make the process as hassle-free as possible. We’re there for you at every step, always keeping you in the loop.

Excellent Reviews

We’re proud of our long-standing 5 Star Rating on Trustpilot, and love all the positive feedback we get from customers every day. We feel privileged to help people get a great deal with far less stress.

Why use a mortgage broker?

Most of our customers have had some form of credit difficulties, from low credit score, missed payments or declined a mortgage elsewhere.

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

  • With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
  • Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
  • With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
  • Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

  • You enquire online with us today or request a call back
    Our simple form takes a couple of minutes to fill in, this gets the ball rolling
  • One of our experts will give you a call to find out more about your situation
    We have experts in remortgaging, who focus solely on helping customers save money
  • We do all the hard work for you
    We search the market for the trusted lender that’s right for you
  • Our expert will get back in touch
    We can guide you every step of the way, and we’ll always keep you up-to-date with progress
Meet the team

Sarah Tinkler

With over 15 years within financial services, Sarah knows exactly what can and cant be achieved from a mortgage perspective and there are not many scenairos she hasn’t faced.

Call us on: 0800 197 0504

Below are some of the lenders we work with