Getting a Mortgage with a Debt Management Plan (DMP)

Find out how you can secure the best rate with a DMP

Firstly, have you had a Debt Management Plan registered in the last 6 years?

Home Bad Credit Mortgages Getting A Mortgage With A Debt Management Plan (DMP)
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Jon Nixon

Reviewer: Jon Nixon

Director of Distribution

Updated: March 15, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

March 15, 2024

Here we’ll look at the impact of debt management plans (DMPs) on your chances of getting a mortgage, including both active and satisfied plans.

We’ll also look at what you can expect in terms of criteria from lenders and which ones will be open to your application.

What is a debt management plan (DMP)?

A debt management plan is an informal, non-binding agreement between a debtor and their creditors to pay off non-priority debts, such as credit cards, personal loans and store cards.

They involve paying a combined monthly instalment which is then divided between all of the creditors involved. They are managed by a DMP provider but since they aren’t legally binding, can be cancelled at any time and have no minimum payment amount.

They stay on your credit reports for six years.

To check whether you have a DMP on your file, download your credit reports by activating a free trial through one of our credit report provider partners.

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Can you get a mortgage with a debt management plan?

Yes, you can, but it very much depends on your personal circumstances. With a debt management plan one of the most important things that lenders will look at is whether or not the DMP is still active and, if not, how long ago it was satisfied.

If you are currently managing debts as part of a plan then your options are going to be a lot more limited as the majority of lenders, especially the high street banks, won’t consider an unsatisfied DMP.

Whatever the current status of your DMP though, the important thing to note is that there will be lenders out there open to considering your mortgage application; it’s just a case of finding them – ideally via a specialist broker – and potentially accepting less competitive terms.

How to get a mortgage with a DMP

Your first step should be to find a mortgage broker who specialises in bad credit as this will boost your chances of approval and landing a good deal. Make an enquiry and we will match you with an advisor whose area of expertise is debt management plans.

Your handpicked mortgage advisor will guide you through the following steps:

  • Calculating your maximum borrowing: Doing this without expert advice can be tricky as any debt repayments will need to be factored into your outgoings, but a broker can provide bespoke calculations.
  • Downloading your credit reports: You can do this by accessing a free trial, and then your broker will suggest ways to optimise your credit files and build up credit quickly to boost your application.
  • Finding the right lender and best deal for you: The mortgage brokers we work with have deep working relationships with lenders who offer mortgages to borrowers with DMPs, and they could secure you an exclusive deal through one of them.

How long after a DMP has been satisfied can you apply for a mortgage?

This very much depends on the lending criteria – which will vary from lender to lender – and the severity of the DMP. However, the typical timescale is between 12-36 months.

This is definitely where speaking to a broker with experience in this area can be invaluable. They will be able to identify those lenders who look more favourably on applications where a DMP has been satisfied within this timescale (or sooner).

Does the DMP need to be satisfied before applying for a mortgage?

No, but you will have a wider choice of mortgage lenders to approach if it is settled and therefore stand a better chance of getting a better deal.

The table below reveals approximately how many approachable mortgage lenders there will be for satisfied vs. unsatisfied DMPs.

DMP Status Approximate number of approachable lenders
Satisfied 56
Unsatisfied 13

Please note lenders mortgage terms and criteria can be subject to change. Speaking to a mortgage broker is the best way to keep track of the terms and conditions available at any given time.

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Lending criteria

Appetite for risk can vary significantly between lenders, so there isn’t a one-size-fits-all model when it comes to lending criteria on a DMP mortgage.

There are a few key differences to note though between applying for a standard mortgage and a mortgage with bad credit.

DMP Status

Timing is everything when applying for a mortgage with a DMP and different lenders will apply different criteria about how long they want your DMP to have been active or satisfied. Most lenders who are open to active DMPs require them to have been in place and well-maintained for at least 12 months, as this shows that you’re managing your finances responsibly.

The majority of mainstream lenders will require your DMP to be satisfied and for a set timeframe to have passed, normally between one and three years. Many will disregard them completely after this point, so allowing some more time to pass before making your mortgage application could increase your pool of would-be lenders and open up more competitive deals.


A DMP makes you higher risk and lenders will want more equity in the property to mitigate this. You should expect to need a deposit between 15%-30% deposit, depending on whether the DMP is currently satisfied or not and upon which lender you approach.

Generally, you will pay higher interest rates too on a mortgage with a DMP but if you’re able to put down a higher deposit this can open up better rate options. A lower LTV (loan-to-value) could also give you scope to negotiate other eligibility criteria

The table below reveals what your chances of mortgage approval could be based on your deposit amount:

Deposit Amount Chances of Mortgage Approval With a DMP
5% Unlikely if DMP is unsatisfied but is possible if satisfied for more than 6 years
10% Possible if DMP has been satisfied for more than three years
20% Approval possible assuming no other credit issues or risk factors present. DMP would need to be satisfied for at least two years
Over 30% Approval possible even if DMP is not satisfied. More likely if satisfied

Please note lenders mortgage terms and criteria can be subject to change. Speaking to a mortgage broker is the best way to keep track of the terms and conditions available at any given time.

The role your credit record plays

It may seem strange to consider your credit record when you already have a debt management plan but it’s actually more relevant than ever in terms of giving context to the DMP and illustrating your overall approach to finances.

Leeds Building Society, for example, will consider an active DMP but only if you can show it was an isolated incident, has been managed well and your credit record is otherwise good, with no other late payments, arrears or defaults.

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How much could you borrow?

The amount you can borrow will largely be based on your income and outgoings, with your DMP factored into the latter. As a starting point, most mortgage providers will cap your maximum borrowing at 4.5 times your income.

Other lenders go higher than this, up to 5.5-6 times your salary, but you will find it more difficult to access these higher income multiples due to your plan.

Try our calculator below to get a rough idea of your maximum borrowing:

Mortgage Affordability Calculator

Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.

Input full salaries for all applicants

Your Results:

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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Which lenders will consider your application?

Most mainstream lenders, such as HSBC, Barclays and Nationwide will not accept mortgage applications from someone with a DMP. However, there are a number of other, specialist, lenders who will.

The following examples are just an illustration to give you an idea of who might offer a DMP mortgage and under what terms:

  • Hinckley and Rugby Building Society will consider applications where a DMP has been satisfied for at least three years and no further bad credit has been recorded since. They will only lend up to a maximum LTV of 75%
  • Halifax is open to previous DMPs but requires a minimum of 6 years to have passed since it was satisfied and will look at your credit file for overall good financial management.
  • The Loughborough Building Society will disregard DMPs that were satisfied over 3 years ago. More recent DMPs are acceptable but subject to a maximum 70% LTV and by referral only.

What if you have other credit issues?

It’s possible to get a debt management plan if you have other types of bad credit on your files as well, but it will be more complex. Specialist bad credit lenders have the flexibility to view the overall strength of your application, so for any other credit issues, they will also take on board the age, severity and circumstances behind them.

Your chances of mortgage approval will be higher if the other issues are minor, such as missed payments, rather than bankruptcy or repossession.

It’s always advisable to apply through a bad credit mortgage broker if you have more than one type of adverse credit against your name.

Does a debt management plan affect your chances of remortgaging?

Yes, it could do, but perhaps not quite to the same degree as there may be more flexibility available, particularly if you have a clean repayment history with your existing lender.

Remortgaging with bad credit follows a similar process as a new mortgage, although there are a few things that can make it a little different. As mentioned, a simple product switch with your existing lender could be one way to do it for example, as they will already have a relationship with you and may be more open to accepting the DMP.

If you have a lot of equity in your home then this will definitely be a plus as it means you’ll have a low LTV, something which lenders look positively on when you have bad credit. If the issue is still current, then remortgaging could also give you the option to release some equity to clear your debts and give you a clean slate.

If this is an option for you then lenders may be able to take this into account when calculating affordability, as your other monthly repayment commitments will be reduced after remortgaging.

Getting a buy-to-let mortgage with a DMP

While those applying for a buy-to-let mortgage with a DMP will face similar restrictions to residential mortgage borrowers, lenders will be able to look not just at your personal finances but at the business case for your buy-to-let property too.

If you can show that you have experience as a landlord, that there is high demand for similar properties and the rental income projections are strong then this can go some way to mitigate the impact of your DMP.

Get matched with a bad credit mortgage broker

Getting a mortgage with a DMP may not be straightforward, but by working with a broker who has specific knowledge and experience of the bad credit mortgage lenders, you’ll give yourself the best possible chance of securing the loan you need.

Call 0808 189 2301 or make an enquiry online and we will match you with a broker who specialises in mortgages for borrowers with debt management plans today.

Maximise your chance of approval with a broker who's a specialist in mortgages with DMPs

Get Started Phone Icon 0808 189 2301


While a DMP doesn’t automatically show up on your credit file, some creditors may ask for a note to be included saying that you have a debt management plan, or they could record it as a default. It will also show up indirectly as lower-than-expected repayments on current debts and this will most likely reduce your credit score.

Whether or not it’s there in black and white, you’re still legally obliged to tell potential lenders about it, as it’s something that could impact their decision to give you a mortgage.

Yes, it’s possible but it may prove even more tricky. A first time buyer doesn’t have the advantage of any mortgage repayment track record, which would give a lender some element of comfort or confidence when reviewing an application. Speaking with a broker before approaching lenders would be the smart move here as they would be able to advise you on the best way forward.

This could be quite difficult but, again not impossible and really no harder than applying for a standard mortgage. Speaking with a broker who specialises in shared ownership mortgages would be highly recommended in the first instance rather than trying to directly apply with a lender.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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