Getting a mortgage with a debt management plan

Yes, though the choice of lenders is narrow while a plan is still running. Some specialist lenders consider applicants with an active debt management plan, usually if payments have been made on time for a while. More lenders consider a plan that has been completed, especially once the related entries are older.

A debt management plan, or DMP, is an informal agreement to repay non-priority debts in affordable monthly payments, often arranged by a debt advice charity or a company (MoneyHelper, accessed 20 Oct 2026). It is not a formal insolvency, and it is not recorded on the Insolvency Register.

A DMP is not recorded as a separate entry, but the accounts included in it often show arrangement-to-pay markers, missed payments or defaults. These entries stay on the file for 6 years from the date they were recorded (MoneyHelper, accessed 20 Oct 2026). Lenders read the plan from these entries and from the application form.

Many application forms ask directly about debt arrangements, and the answer needs to match the file.

Because the entries vary between creditors, the file may look different at each agency. Checking all three files shows what lenders will see.

Lenders treat an active plan and a completed plan very differently. An active plan means debts are still being repaid, and the monthly payment reduces the income left for a mortgage. A completed plan shows the debts were cleared, and once the plan's entries have aged, more lenders become willing to consider the application.

Some applicants clear the remaining balance of a plan early, using savings or family help, before applying. Lenders may ask for a letter confirming the plan is closed and the debts are settled.

How lenders treat a debt plan alongside other credit problems, such as CCJs or an IVA, is covered in the adverse credit mortgages guide, which sets out the wider market.

Lenders check when the plan started, how much is owed, whether payments have been made on time, and whether the plan has been completed. They also look at the deposit, income and outgoings in the usual way. The plan's monthly payment counts as a commitment in the affordability test while the plan is active.

A clear record of plan payments, backed by bank statements, shows the lender that money is being managed well. Missing plan payments, or adding new debt during a plan, reads poorly.

Getting copies of all three credit files, a statement from the plan provider and evidence of payments made gives a full picture of the plan. Saving a larger deposit, registering on the electoral roll and avoiding new credit all help. Some applicants wait until the plan is completed before applying, to widen the choice of lenders.

If a plan is no longer affordable, free debt advice services can review the options. Brokers who arrange adverse credit cases can be compared on the adverse credit mortgage brokers page, by rating, reviews and region.