GUIDES
Mortgage with a Debt Management Plan (DMP) — GoMortgage®
Got a DMP? Don’t let it block your path to a home.
If you’re on a debt management plan (DMP) or have been recently, it doesn’t mean you can never get a mortgage. At GoMortgage, we help clients just like you – who’ve been through it, and still want to move forward – by matching you with lenders who understand the real story.
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Bad Credit Mortgages - Mortgage With a Debt Management Plan
What is a Debt Management Plan (DMP)?
A DMP is an informal agreement between you and your unsecured creditors (e.g., credit cards, overdrafts, personal loans) to repay what you owe at an affordable monthly amount and it doesn’t cover priority debts (like your mortgage or rent) unless specially arranged.
While it shows you’re taking action, it does affect how some lenders view your mortgage application.
Can you get a mortgage with a DMP?
Yes – you can. But you need the right approach, the right timing, and the right broker. Mainstream lenders may see a DMP as a big red flag (automated declines do happen). But specialist lenders can, and do, say yes — when the rest of your profile stacks up.
Your odds improve if you can show:
- Your DMP is settled (but not always required) – many lenders will look more favourably if it’s paid off.
- The DMP has been in place for a period of time, and you’ve kept up with the payments.
- Your deposit or equity is strong (so lender risk reduces).
- You’ve had no further adverse credit events.
- Your income, outgoings and affordability fit with the lenders criteria.
Access Your Credit Report
Knowing exactly what lenders see is the first step. Checkmyfile lets you view your full credit picture across all three UK agencies in one place, helping you spot issues, track progress, and avoid surprises before you apply.
What will lenders look at?
Here are key criteria they’ll assess:
- Status & date of DMP: Is it current or completed? When did it begin?
- Adherence to plan: Have you made all payments on time? Have there been defaults outside the DMP?
- Outstanding debts: Are there debts outside the plan? Were they included?
- Deposit / equity: The more you can contribute, the stronger you look.
- Property type & Loan To Value (LTV): Some properties (new builds, flats) may have more restrictions for adverse credit cases.
- Affordability & stability: Income, term, commitments – all must meet lenders criteria.
What deposits and rates should you expect?
Because you carry higher risk, you’ll often see:
- Higher deposit or larger equity requirement than prime Some lenders may want 15-30%+ equity depending on your DMP case.
- Higher interest rates initially – we work to get you in, then improve your terms
- Fewer lenders willing to consider the case.
How GoMortgage works for DMP cases
- Initial review – We take your full credit and debt history, including the DMP
- Strategy session – We decide if you apply now, or if we should first improve your position (e.g., wait, save, reduce debts).
- Lender matching – We use our whole-of-market access to find the lenders who knowingly accept DMP cases.
- Application build – We help you present your story: the DMP’s reason, how you’ve moved on, your positives.
- Submission & chase – We monitor everything, stay on the case, and keep you
- After approval – Once you’ve got the mortgage, we set up a review to improve terms later once your profile has strengthened.
Ready to move forward?
If you’ve been on a DMP (or are considering one) and believe a mortgage is now out of reach — it’s not. Click For Free Trial.
Call GoMortgage on 01253 935050 or start with your multi-agency credit report:
Speak With A Mortgage Advisor today
Contact our friendly mortgage advice team. Sound mortgage advice from the experts at GoMortgage.
Author: Chris Days Head of Content
- 5 Mins
- Updated: Nov 5 2024
Frequently Asked Questions
Can I apply with a current DMP?
Yes. Some specialist lenders will consider applications where the DMP is ongoing. The key is showing it has been managed well.
Do I have to wait until the DMP is finished?
Not always, although finishing the DMP often improves your options.
Will my DMP appear on my credit file?
Sometimes, yes. Even if it does not appear, having reduced payments under a DMP still shows lenders that you have existing commitments.
How long will the DMP affect my mortgage chances?
As long as the underlying adverse events are recorded on your file, typically six years. The impact reduces over time.
Should I pay off the DMP before applying?
If you can, yes. It strengthens your case. But with the right lender and enough equity or deposit, it may still be possible to proceed sooner.
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