Can You Get a Mortgage with a Debt Management Plan (DMP)?
If you’re in a Debt Management Plan (DMP) and wondering if a mortgage is still possible, the short answer is: yes, it can be — but it works a little differently to a standard application.
We’ve helped plenty of people at Mortgage Bridge get a mortgage while in a DMP or just after finishing one. We work with all sorts of situations — adverse credit, complex income, multiple debts — so if that’s you, you’re in the right place.
Here’s everything you need to know, based on the questions we get asked most.
What Exactly Is a Debt Management Plan and How Does It Work?
A Debt Management Plan is basically an informal agreement with your creditors to make reduced monthly payments towards your debts. Usually, you’ll have a DMP provider who handles it for you, negotiating with lenders to:
- Lower your monthly payments
- Freeze or reduce interest
- Stop extra charges from building up
It’s not a formal insolvency, so it’s not recorded in the same way, but your credit file will show the missed or reduced payments. That’s the bit that can make getting a mortgage a bit trickier.
Can I Get a Mortgage While I’m Still in a DMP?
Yes — you can get a mortgage while in a debt management plan. But you probably won’t be going to a high street bank.
Some lenders simply won’t touch a DMP until it’s finished. Others — usually specialist lenders — are more flexible, as long as the rest of your application looks solid.
We’ve had clients get mortgage deals while still in a DMP. The key? Finding the right lender and showing that you’ve been keeping up with your plan without missing payments.
How Long After a DMP Can I Apply for a Mortgage?
Different lenders have different rules. In our experience:
- Some will look at you after 6–12 months of consistent DMP payments.
- Others prefer at least 3 years of history.
- A few won’t consider you until your DMP is completely finished.
If you want the widest choice and best rates, waiting until the DMP is over — and giving it another year or so to rebuild your credit — is often the way to go. But if you need to buy sooner, there are still mortgage options with a DMP.
How Much Deposit Do I Need for a Mortgage with a DMP?
This is a big one. The deposit needed for a mortgage with a DMP is usually bigger than for someone with clean credit:
- Specialist lenders often want 15–25% deposit.
- Some will take 10% if your DMP is done and your credit is looking better.
We always say: the bigger the deposit, the better. It gives lenders more confidence, opens up more options, and can sometimes get you a better rate — even for a bad credit mortgage with a DMP.
Will a DMP Affect My Mortgage Affordability?
Yes, it will — but it doesn’t have to stop you.
Two things lenders look at:
- Your credit history – Missed/reduced payments from your DMP will stay on your file for up to six years.
- Affordability – They’ll factor in your ongoing DMP payment when working out how much you can borrow.
When we do affordability checks for a mortgage with a DMP, we look at how comfortably you can pay both your mortgage and your DMP without stretching your budget too far.
What Will I Need to Show a Lender?
If you’re going for a mortgage during a debt management plan, expect to share:
- Proof of income – Payslips, P60s, or tax returns if you’re self-employed.
- Bank statements – Usually 3–6 months.
- DMP details – Start date, current balance, and monthly payment.
- Payment history – A letter from your DMP provider showing you’ve paid on time.
Specialist lenders care a lot about recent behaviour. If you’ve been steady and consistent, you’re in a much better position.
Can I Remortgage While in a DMP?
Yes, you can. We’ve helped clients remortgage with a debt management plan to avoid going onto a higher variable rate, release equity, or just get more predictable payments.
Rates might not be as low as they would be without a DMP, but you can still improve your situation compared to sticking with a bad deal.
Should I Apply During or After My DMP?
It really depends on your priorities:
- During the DMP – You may face higher rates, bigger deposit requirements, and fewer lender options.
- After the DMP – More choice, better rates, and an easier process if you’ve had time to rebuild your credit.
If you can wait, it’s often worth it. If you can’t, it’s about knowing where to go.
How Can I Improve My Chances of Getting a Mortgage with a DMP?
Here are some tips we give our clients:
- Pay your DMP on time every month — no excuses.
- Save the biggest deposit you can.
- Clear other debts if possible to improve affordability.
- Avoid taking out new credit before your mortgage application.
- Work with a mortgage broker who understands debt management plans — that’s literally what we do every day.
What Myths Should I Ignore About DMP Mortgages?
“You can’t get a mortgage until the DMP is finished.” – Not true. Some lenders will consider you mid-plan.
“The rates will be sky-high.” – Not always. Yes, they can be higher, but not always unreasonably so.
“Specialist lenders are a last resort.” – They’re often the only route for people in a DMP, and they can still offer decent deals.
Why Work with Mortgage Bridge If You’re in a DMP?
We’ve worked with a lot of clients in your exact position. We:
- Know which lenders accept mortgages with debt management plans
- Can tell you exactly what deposit you’ll need for your situation
- Make sure your application is packaged in the best possible way
- Save you from wasting time with lenders who’ll just say no
Final Thoughts: Can You Really Get a Mortgage with a DMP?
Yes — a Debt Management Plan doesn’t have to stop you getting a mortgage. The trick is knowing how to approach it, which lenders to try, and how to make your application as strong as possible.
If you’re in a DMP and want to explore your options — whether you’re buying your first place, moving home, or remortgaging — we can help you find a lender that works for your circumstances.