Quick Answer: Can You Get a Mortgage with a DAS?
Yes, but it’s challenging. A Debt Arrangement Scheme (DAS) impacts your credit score and limits lender options. Specialist lenders may offer a mortgage, but you’ll likely need a larger deposit and higher interest rates. Completing your DAS and improving your credit score increases your chances.
At Mortgage Bridge, we specialise in helping people with bad credit secure mortgages—even with a DAS. Let’s explore your options.
What Is a Debt Arrangement Scheme (DAS) and How Does It Work?
A DAS is a government-backed debt repayment plan that freezes interest and spreads repayments over an extended period. Unlike bankruptcy, it allows you to repay debts in full while protecting your assets.
But how does this affect your mortgage prospects? Let’s find out.
How Does a DAS Impact Your Mortgage Application?
Lenders assess several factors when considering applicants with a DAS:
- Does a DAS affect your credit score? – Yes, it lowers your score and signals financial struggles to lenders.
- Can high street lenders approve your mortgage? – Unlikely. Most mainstream lenders prefer applicants with clean credit histories.
- How does affordability impact your mortgage approval? – Since you’re repaying debts, lenders may worry about affordability.
- Will you have limited mortgage options? – Yes. You’ll need a specialist lender, a larger deposit, and should expect higher interest rates.
Can You Get a Mortgage While in a Debt Arrangement Scheme?
Yes, but it’s more difficult. Here’s what you need to consider:
- Which lenders accept DAS applicants? – Specialist lenders, not high street banks, are your best bet.
- How much deposit do you need? – Likely 15–25% or more.
- Will you face higher interest rates? – Yes, due to the higher perceived risk.
- How can you prove financial stability? – Consistent DAS payments and good money management improve your chances.
Can You Get a Mortgage After Completing a Debt Arrangement Scheme?
Once your DAS is finished, your chances improve. But timing is key:
- How long does a DAS stay on your credit report? – Six years from the start date, affecting lender decisions.
- When should you apply for a mortgage after a DAS? – The longer you wait and rebuild credit, the better your options.
- Does a bigger deposit help? – Absolutely. It reduces lender risk and improves approval chances.
- Which lenders are best post-DAS? – Specialist bad-credit mortgage providers offer solutions for those with financial difficulties.
How Can You Improve Your Mortgage Chances with a DAS?
To increase approval odds:
- Keep up with payments – Demonstrates financial responsibility.
- Monitor your credit report – Fix errors and track progress.
- Save for a larger deposit – Reduces lender risk.
- Use a specialist mortgage broker – Mortgage Bridge can match you with lenders who consider DAS applicants.
- Show stable income – Job stability reassures lenders.
What Mortgage Options Are Available If You Have a DAS?
If you’re in or have completed a DAS, consider these options:
- Bad credit mortgages – Higher rates but designed for those with financial difficulties.
- Guarantor mortgages – A family member guarantees your mortgage, improving approval chances.
- Joint mortgages – Applying with someone with a stronger credit history may help.
- Specialist lenders – Work with brokers to find lenders who accept DAS applicants.
Should You Wait Until Your DAS Is Complete Before Applying?
If possible, waiting until after your DAS is completed will improve your chances. You’ll have time to rebuild credit, save a bigger deposit, and access better mortgage deals. However, if you need to move sooner, specialist lenders may still be an option.
Final Thoughts: Can You Get a Mortgage If You Have a DAS?
A DAS makes getting a mortgage harder, but not impossible. The right approach—choosing the right lender, saving a larger deposit, and improving your credit—can help you secure a mortgage.
At Mortgage Bridge, we specialise in helping those with bad credit find mortgage solutions. If you’re in a DAS and need mortgage advice, get in touch. We’ll help you explore your options and take the next step toward homeownership.