Can You Get a Mortgage with a Debt Management Plan? Expert Answers & Real Options

If you are currently in a Debt Management Plan (DMP) or have recently completed one, you may be wondering if getting a mortgage is realistic. The short answer is yes — it is possible to get a mortgage with a Debt Management Plan, but the right lender, deposit size and timing make a significant difference.

DMPs are more common than many borrowers realise, and lenders regularly assess applications from people who have used debt solutions to regain control of their finances. This guide explains how lenders treat active and completed DMPs, what they look for, and what you can do to strengthen your application. This article provides general information only and does not offer regulated mortgage advice.

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What Is Considered a Debt Management Plan?

A DMP is an informal agreement with creditors to repay debts at a manageable rate. It usually involves:

• Reduced monthly payments
• Potentially frozen or reduced interest
• A third-party DMP provider distributing payments
• A clearer structure to repay unsecured debt

Because payments are reduced, the account may be marked as “arrangement to pay” (AR”P”) or show as arrears, which lenders treat as adverse credit.

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Can You Get a Mortgage While in a Debt Management Plan?

Yes — but only certain lenders will consider applications from borrowers with an active DMP. High-street lenders rarely accept these cases, but specialist lenders may.

Factors affecting eligibility include:

1. How long the DMP has been running

6–12 months of consistent payments usually helps demonstrate stability.

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2. Whether the DMP is fully up to date

Lenders expect:

• No missed DMP payments
• No returned direct debits
• Clear conduct for the last 6–12 months

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3. How much debt remains

Large balances relative to income may affect affordability.

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4. The size of the mortgage deposit

Larger deposits (15–25%) increase lender flexibility significantly.

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Can You Get a Mortgage After Completing a DMP?

Yes — and your lender options increase once a DMP is completed.

Most lenders look at:

• The date your DMP ended
• Whether all debts were marked as settled
• Your payment conduct since completion

If the DMP ended more than 12 months ago with clean financial behaviour since, many lenders become accessible again, including some high-street names.

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How a DMP Appears on Your Credit File

A DMP may appear on your credit report in several ways:

• “Arrangement to Pay” markers
• Arrears markers
• Reduced payments
• Settled or partially settled balances

These markers remain visible for up to six years from the date they were recorded. Even if the DMP is complete, lenders still see the history.

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What Lenders Look for When You Have a Debt Management Plan

Lenders assess the following carefully:

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1. Payment Behaviour During the DMP

This is the most important factor.

Lenders check whether:

• All DMP payments were on time
• Any accounts fell into further arrears
• There were any recent financial difficulties

Strong conduct helps offset the presence of adverse credit markers.

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2. Affordability with Remaining DMP Payments

If your DMP is still active, the monthly payment is added to your financial commitments.

This reduces:

• Maximum borrowing
• Overall affordability scores
• Your lender options

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3. Bank Statement Conduct

Lenders look for consistency in the last 3–6 months:

• No unarranged overdrafts
• No returned direct debits
• Stable income patterns
• Predictable spending
• No signs of financial stress

Good conduct can significantly strengthen your application.

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4. Deposit Size and Loan-to-Value (LTV)

Higher deposits reduce lender risk.

Typical expectations:

• 5% deposit – rarely accepted with active DMPs
• 10% deposit – may be possible for completed DMPs
• 15–25% deposit – strong options for both active and historic DMPs

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5. When the DMP Was Completed

Lenders generally prefer at least:

• 0–6 months: specialist lenders only
• 6–12 months: wider range of specialist lenders
• 12+ months: some high-street lenders may consider
• 24+ months: many lenders treat you similarly to applicants with historic adverse credit

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Does a DMP Affect Mortgage Rates?

Yes — the more recent the DMP, the higher the likelihood that you may need to use a specialist lender, who may offer less competitive rates.

Rates improve when:

• The DMP has ended
• You have a larger deposit
• You have strong bank conduct
• You have stable employment and income

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Example Monthly Repayments on a Mortgage When You Have a DMP

Even with a DMP, repayment amounts follow standard interest rates. A larger deposit typically reduces the rate offered and improves affordability.

Examples for £150,000 borrowing:

Rate	25-Year Term	30-Year Term
5%	~£877	~£805
6%	~£966	~£899

These figures illustrate how higher LTVs or adverse credit can affect affordability.

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Common Scenarios and What They Mean for Your Application

Scenario 1: Active DMP, clean recent bank statements, 20% deposit

Likely suitable for specialist lenders.

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Scenario 2: DMP completed 18 months ago, no missed payments since

High-street lenders may consider depending on credit behaviour.

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Scenario 3: Multiple AR”P” markers but low debt remaining

Possible with several specialist lenders.

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Scenario 4: DMP ended over 2 years ago with improved credit score

Often strong options available across the market.

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Scenario 5: New DMP started within the last 6 months

Usually requires waiting or approaching a specialist lender.

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How to Improve Your Mortgage Chances with a DMP

(General Information Only)

1. Keep All DMP Payments Up to Date

Any missed payments make lenders cautious.

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2. Avoid Taking Out New Credit

Fresh borrowing may reduce affordability and raise red flags.

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3. Maintain Clean Bank Conduct for 3–6 Months

Stability is essential.

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4. Build a Larger Deposit

Improves interest rates and increases lender choice.

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5. Check Your Credit Files

Review Equifax, Experian and TransUnion for accuracy.

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6. Reduce Remaining DMP Balances Where Possible

Lower monthly payments improve affordability.

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Summary

Getting a mortgage with a Debt Management Plan is possible, whether the DMP is active or completed. Lenders look closely at:

• Payment behaviour
• Deposit size
• Affordability
• Bank statement conduct
• How recent the DMP was

Specialist lenders are often the best route during an active DMP, while high-street lenders may consider applicants whose DMP was completed at least 12–24 months ago.

This article provides general information only. For personalised support, regulated mortgage advice is required.