Debt Management Plan Mortgages: Getting a Mortgage with a DMP
A Debt Management Plan (DMP) is an informal arrangement to repay your debts at a reduced rate. Unlike more formal solutions like IVAs, DMPs can be more flexible for mortgage purposes, and specialist lenders understand these situations.
Content reviewed: 13 January 2026
DMP Mortgages at a Glance
- •Mortgages are possible during and after a Debt Management Plan
- •DMPs are viewed more favourably than IVAs by most lenders
- •12+ months consistent DMP payments improve your application
- •Expect 15-25% deposit with an active DMP
- •Options improve significantly after DMP completion
What is a Debt Management Plan?
A Debt Management Plan (DMP) is an informal agreement between you and your creditors to pay back non-priority debts (like credit cards and personal loans) at a reduced monthly rate you can afford. Unlike an IVA, a DMP isn't legally binding and doesn't appear on public records like the Insolvency Register.
DMP Advantages for Mortgages
- • Not on Insolvency Register
- • More lenders consider DMPs than IVAs
- • No formal restrictions on obtaining credit
- • Can be exited at any time
Considerations
- • Shows on credit file via payment markers
- • Still considered adverse credit
- • May take longer than IVA (no debt write-off)
- • Limited lender choice during active DMP
DMP vs IVA for Mortgage Purposes
| Factor | DMP | IVA |
|---|---|---|
| Public record | No | Yes (Insolvency Register) |
| Lender availability | More options | Fewer options |
| Permission needed | No formal permission | IP permission required |
| Typical duration | Until debt paid (variable) | Usually 5-6 years |
| Deposit needed | 15-25% during / 10-15% after | 25-30% during / 15-20% after |
Frequently Asked Questions
Yes, some specialist lenders consider mortgage applications from borrowers with active or completed Debt Management Plans (DMPs). Unlike IVAs, DMPs aren't registered on public records, though they show on your credit file.
Not necessarily. Some lenders will consider applications during an active DMP, especially if you've been on the plan for over 12 months with consistent payments. However, options improve after completion.
A DMP shows on your credit file through the reduced payment markers on your accounts. Creditors may add 'arrangement to pay' markers. These remain visible for 6 years from the date they were recorded.
With an active DMP, expect 15-25% deposit requirements. After DMP completion with clean credit, 10-15% may be sufficient depending on how long ago the DMP ended.
DMPs are generally viewed more favourably than IVAs. They're informal arrangements not registered in public records, and don't carry the same restrictions. However, both are considered adverse credit.
Yes, though options are limited during an active DMP. Remortgaging after DMP completion is easier. If you're remortgaging to consolidate debt, this may allow you to exit the DMP early.
Related Topics
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Remortgaging
Find better rates or release equity from your current property with expert remortgage advice.
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Content reviewed: 13 January 2026