Adverse Credit
Getting a Mortgage With a Debt Management Plan
Some specialist lenders will consider you while a debt management plan is running, and more will once it is finished. They look at how long the plan has been well run, what is left to pay, and the defaults or arrears on the accounts in it.
Written and reviewed by Davi Thakar, CeMAP qualified mortgage and protection adviser Updated
Yes, you can get a mortgage with a debt management plan, but usually through a specialist lender. Some will consider you while the plan is running, and more will once it is finished.
A debt management plan (DMP) is an informal agreement to repay your unsecured debts at a rate you can afford, either set up yourself or through a debt charity or company. It is not a formal insolvency like an IVA or bankruptcy, and the plan itself does not usually appear on your credit file. The accounts in it do, often as defaults or arrears, because you are paying less than the original agreement.
That is what lenders assess: the condition of those accounts, how the plan has been run and what is left. GOV.UK explains how debt management plans work, including that creditors do not have to accept one.
For how a DMP compares with other credit problems, see our bad credit mortgage guide.
Can you get a mortgage on a debt management plan?
Yes, with a small number of specialist lenders. Most want a solid record of on-time plan payments, often 12 months or more, and a bigger deposit. They count your plan payment as an outgoing, so it reduces what you can borrow. Once the plan is complete and the debts are settled, your choice of lenders widens.
Active plan or completed plan?
| Active DMP | Completed DMP | |
|---|---|---|
| Lender choice | A small number of specialists | Many more specialists, and some mainstream lenders once the defaults are older |
| What lenders want | Usually 12 months or more of on-time plan payments | Proof the debts are settled |
| Affordability | Your plan payment counts as an outgoing | No plan payment to count |
| Typical deposit | Often 15% to 25% | Often 10% to 15%, less as problems age |
Some lenders will also consider you if the mortgage would let you clear the plan, for example a remortgage that repays the remaining debts. That is assessed case by case.
Which lenders accept a debt management plan? (criteria checked October 2026)
We checked the criteria these lenders publish for brokers on 16 and 17 October 2026. Criteria change often, every lender also credit scores, and meeting a rule does not guarantee approval. Use this as a guide to where you might fit, not a promise.
| Lender (source) | What they publish |
|---|---|
| Virgin Money (high street) | No DMP in place |
| TSB (high street) | Declines a DMP in the last 6 years |
| Accord (building society) | None registered in the last 6 years |
| Skipton (building society) | Current or past DMP possible if no missed payments in the last 6 months and other rules are met |
| Precise (specialist) | Active plans need at least 12 months’ history, max 85% LTV |
| Bluestone (specialist) | An active plan can stay in place if it has been run well and was caused by a life event |
| Pepper Money (specialist) | Considered if satisfied over 12 months ago |
What this tells you: most high street lenders will not lend while a DMP is running or recently finished. A few specialists will lend on an active plan with a good payment record, usually with a bigger deposit.
Rules are summarised in plain English from each lender’s own published criteria. Lenders change them regularly, so we check again before recommending anything.
Real client case: buying with an active debt management plan
Our client had been on a debt management plan for almost two years and had never missed a payment. They kept the plan running after buying. The lender counted the monthly plan payment as a credit commitment, the same as a loan, when it worked out affordability. With a good income, a well-run plan and a 15% deposit, our client bought their home with a specialist lender. The mortgage completed.
What this shows: an active plan does not have to stop you buying. Lenders that accept one want a clean payment record, usually at least 12 months, and enough income to cover the plan payment as well as the mortgage. A 15% deposit fits within the 85% loan-to-value limit some specialists set for active plans.
Which situations do lenders see most?
These are illustrative situations, not Option Finance client outcomes.
Plan running well
Several years of on-time plan payments and a small balance left. A few specialists will consider it now.
The plan record is your evidencePlan just finished
All debts settled in the last few months. More lenders open up, but the defaults are still recent.
Get settlement letters for every accountPlan only just started
Less than a year in. Most lenders want a longer track record first.
Usually worth waitingHomeowner on a plan
Looking to remortgage and clear the remaining debts. Some lenders assess this case by case.
Weigh up securing the debt firstIllustration only
A buyer has paid £250 a month into a DMP for three years without missing a payment, with £4,000 left across two accounts that show as defaulted. A specialist lender might consider them with a 15% deposit, counting the £250 as a monthly outgoing. If they clear the plan first, more lenders become available and the £250 no longer reduces what they can borrow.
Should you clear the plan first?
Often it helps, but not always.
- Clear it if you can without using your deposit. Settled accounts and no plan payment both improve your options.
- Do not raid your deposit to clear a small plan if it leaves you with too little to buy. A larger deposit can matter more than an open DMP.
- Ask for full and final settlement letters, and check each account is updated on your files as settled or partially settled.
What do lenders check?
- How long the plan has run, and whether every payment was made on time
- The number and size of debts, and what remains
- When the accounts defaulted
- Whether you have taken new credit since the plan started, which most lenders view badly
- Affordability, including any remaining plan payment
What documents will you need?
- A payment history from your plan provider, showing every payment made and the balance left
- Settlement letters for any accounts you have cleared
- Your credit reports from all three agencies
- Recent bank statements showing the plan payment going out and your other bills paid on time
- A short explanation of why you entered the plan and what has changed
How do you get your file in order?
- Get all three credit files. Each creditor in the plan may report differently. The ICO explains how to get your file free and challenge errors.
- Check dates. A default date that is later than it should be keeps it on your file longer. Challenge errors.
- Keep paying on time. A clean plan record is your strongest evidence.
- Avoid new borrowing.
- Register on the electoral roll.
How is a DMP different from other options?
A DMP is different from an IVA or a debt relief order, which are formal and treated more seriously. If your accounts show defaults or CCJs, those guides explain how lenders view them. If you are thinking about using your home to clear the plan, read remortgaging for debt consolidation first.
Frequently asked questions
Can I get a mortgage while on a debt management plan?
Some specialist lenders will consider you, usually after at least 12 months of on-time plan payments and with a larger deposit. Your plan payment counts against affordability.
Does a DMP show on my credit file?
The plan itself usually does not, but the accounts in it often show as defaulted or in arrears.
How long after a DMP can I get a mortgage?
Some lenders consider you straight after it is completed. Options widen as the related defaults age, and most drop off six years from the default date.
Should I pay off my DMP before applying?
It usually helps, as long as you do not use money you need for your deposit. Get settlement letters and check your files are updated.
Is a DMP the same as an IVA?
No. A DMP is informal, while an IVA is a formal insolvency agreement. Lenders treat IVAs more seriously.
Do lenders count my DMP payment as an outgoing?
Yes. While the plan is running, the monthly payment is treated as a committed outgoing, which reduces how much you can borrow.
Can I remortgage to clear my DMP?
Some lenders will consider it, assessed case by case. It turns unsecured debt into debt secured on your home, so think carefully and get advice before deciding.
Speak to Option Finance about a mortgage with a DMP
Send us your plan statement and credit files. We will tell you straight whether applying now or after the plan ends would work better, and what deposit you would need either way.
Book a free initial consultation using the enquiry form below. See our adverse credit mortgage advice, and read our guides to mortgages after an IVA and remortgaging with bad credit.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Written and reviewed by Davi Thakar
Director & Senior Mortgage Broker
CeMAP Qualified Mortgage and Protection Adviser
Davi founded Option Finance with a vision to deliver transparent mortgage advice from a wide panel of lenders. With over 10 years in financial services, he specialises in complex cases including adverse credit, self-employed borrowers with limited trading history, and large buy-to-let portfolios. He works directly on complex cases and explains each option clearly.
Meet Davi Thakar
