Can You Get a Mortgage on a Debt Management Plan?

8 min read · UK focused · Updated 2 Oct 2026

Getting a new mortgage while a debt management plan (DMP) is active is harder, but not always impossible: most mainstream UK lenders will say no, while some specialist lenders will consider you once the plan has been well maintained, usually with a bigger deposit and a higher rate. If you already have a mortgage and your fixed rate is ending, a product transfer with your existing lender is often still available. And once the DMP is finished and defaults age, your options widen steadily.

A DMP is an informal agreement to repay your unsecured debts — cards, loans, overdrafts — at a rate you can afford, usually with interest frozen. It doesn't include your mortgage, which stays a priority payment you keep up in full. That distinction matters, because the answer to "can I get a mortgage on a DMP?" depends on whether you need a new mortgage, a new deal on your existing one, or extra borrowing. This guide takes each in turn. If you're not yet on a plan, start with what a debt management plan is and the DMP calculator.

How a DMP shows on your credit file

A DMP itself isn't recorded as a separate entry, but its effects are: accounts in the plan usually show reduced payments, arrangement-to-pay markers or defaults. Lenders read those markers, not the word "DMP".

Because you're paying less than the contractual amount, creditors report each account in the plan in one of a few ways: as being on an arrangement to pay (sometimes shown as an "AP" marker), as being in arrears, or — quite often — as defaulted. Different creditors in the same plan can report differently. A default stays on your credit file for six years from the date it was registered, even after the debt is repaid, at which point it's shown as satisfied.

That's why the first step before any mortgage conversation is to check your reports with all three credit reference agencies — Experian, Equifax and TransUnion. Note each account's status and the exact date of any default. Mortgage brokers match lenders to how long ago each event happened, so precise dates matter more than almost anything else.

Situation 1: you need a new mortgage during a DMP

Most high-street lenders won't lend during an active DMP. A smaller group of specialist lenders may, typically after the plan has been kept up for a while, with a larger deposit and at a higher rate.

Specialist (sometimes called adverse-credit) lenders assess applications individually rather than declining automatically. What they generally look for:

• A well-run plan. A DMP that has been paid on time for a sustained period — often at least a year — shows you're managing your commitments.
• A larger deposit. The more recent your credit problems, the bigger the deposit lenders usually want. A larger deposit is also the most effective way to widen your choice and lower the rate.
• Clean recent conduct. No new missed payments, no payday loans, and no heavy overdraft use in recent bank statements.
• Affordability. Under FCA mortgage rules, lenders must check you can afford the payments now and if rates rise. Your DMP payment counts as a commitment, which reduces how much you can borrow.

Some lenders will also want the DMP debts cleared on or before completion. Ask your broker exactly what each lender requires before you apply — and tell your DMP provider before making any changes to your plan.

Situation 2: your fixed rate is ending during a DMP

If you're not borrowing more, a product transfer to a new deal with your existing lender is often available without the full checks a new mortgage needs. It's usually far cheaper than drifting onto the standard variable rate.

This is the situation most homeowners on a DMP actually face, and it's better news than many expect. A product transfer — a new rate with the same lender, same balance, no extra borrowing — generally doesn't involve the full affordability assessment and credit-based decision that a new mortgage application does. As long as your mortgage payments are up to date, lenders typically offer their range of product transfer deals to existing customers.

Contact your lender (or a broker) around three to six months before your deal ends to see what's available. Doing nothing usually means moving onto the lender's standard variable rate, which is normally much higher than its fixed deals and would squeeze the budget your DMP depends on. Keep your DMP provider informed if your mortgage payment changes, because it affects what you can afford to pay your creditors.

Situation 3: remortgaging to clear the DMP

Releasing equity to pay off a DMP turns unsecured debt into debt secured on your home, often over a much longer term. It can cost more overall and puts your home at risk if you can't keep up — get advice first.

If you have equity in your home, borrowing more to clear the debts in your plan can look attractive: the DMP ends, the creditors are repaid and you're left with one mortgage payment. But consider the trade-offs carefully:

• Your home becomes the security. Card debt can't take your home; mortgage debt can.
• Longer terms cost more. Spreading £15,000 over the 20 or more years left on a mortgage can cost far more interest than clearing it over five years in a DMP with interest frozen — even at a lower rate.
• Fewer lenders, higher rates. Raising money while in a DMP usually means specialist lenders, fees and higher rates.
• The habits matter. If the cleared cards are used again, you end up with the bigger mortgage and new debt.

It can still be the right move for some people, but it's a decision to take with free debt advice and independent mortgage advice, not on the strength of an advert.

After your DMP ends: how options widen

Every lender sets its own criteria, so treat these as general patterns rather than rules. For the wider picture — including defaults, IVAs and bankruptcy — see getting a mortgage after debt problems.

Five steps to take now

1. Keep every DMP and mortgage payment on time. Recent conduct carries the most weight with lenders.
2. Check all three credit reports and dispute any errors, such as accounts shown as unpaid that you've since settled.
3. Build your deposit alongside the plan, without cutting your DMP payment.
4. Avoid new credit and multiple applications. Use eligibility checkers that run a soft search, and let a broker approach lenders.
5. Use a whole-of-market broker with adverse-credit experience, and ask about any broker fee before you start.

Estimate how long your DMP will take →

Frequently asked questions

Sources & further reading

1. MoneyHelper — Dealing with debt — free, government-backed guidance on debt management plans and options.
2. StepChange Debt Charity — free debt management plans and advice.
3. Financial Conduct Authority (FCA) — UK mortgage and consumer-credit rules, including affordability and treatment of customers in financial difficulty.
4. Experian, Equifax and TransUnion — the three UK credit reference agencies; each offers a free statutory credit report.

Sources are provided for reference and were current when this guide was last reviewed; lender criteria change frequently. DebtSnowball.co.uk is independent and not affiliated with these organisations.