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Can you get a mortgage with a debt management plan?

MORTGAGES | 30.10.2021

Getting a mortgage with a debt management plan (DMP) can be difficult, but not impossible. Whether your DMP is active or complete, you still have several options to explore that will help you on your way to securing a home. Let’s take a look at how a debt management plan can affect your mortgage and the steps you can take to improve your chances of getting accepted.

Can you get a mortgage if on a DMP?

You certainly can get a mortgage during your debt management plan, but it will be a struggle, and you may not be able to lock in the best deal. Getting a mortgage with a completed DMP is usually easier than with an active DMP. However, both situations are possible, especially with the right plan in place. 

How long after a DMP can I get a mortgage?

As we’ve just mentioned, qualifying for a mortgage is easier with a settled debt management plan. A lender will take your financial status, credit report, income, and the nature of your DMP into consideration when deciding whether you’re eligible for a mortgage. Three years of ‘good behaviour’ after a completed DMP is usually enough to convince lenders you’re able to afford the monthly repayments. 

How long does a debt management plan affect your credit rating?

Debts will stay on your credit report for six years, starting from the date they’re paid off or defaulted. With a debt management plan, you’ll be repaying the money you owe more slowly, meaning your credit score might be impacted for longer.

Can I remortgage with a debt management plan?

If you already own a property, you do have the option to remortgage while on a debt management plan. Remortgaging could help you pay your debts off faster and clear your DMP completely; a new lender will just need to see that you have consistently maintained the payments on the plan.

Which mortgage lenders accept a DMP?

There are many specialist DMP mortgage lenders on the market, it’s just a matter of finding the right one. However, these specialist lenders don’t operate on the high street or advertise their services publicly. They’ll only accept mortgage applications made through a trusted broker such as ourselves at TaylorMade Finance.

How do I get a mortgage with a DMP?

Our expert mortgage brokers have access to the specialist mortgage lenders you’re unable to contact yourself, and can identify which one will best suit your needs. Chat with one of the team here to get your mortgage with a DMP application on the move.
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