Can I get a mortgage with a DMP?

With an active DMP

It is possible to get a mortgage with an active Debt Manangement Plan (DMP) but the liklihood of be eligible for any mortgage application will heavily depend on what type of credit issues led up to the DMP. If credit issues prior to the creation of a DMP include mortgage arrears and/or a very large number of defaults, eligibility for any mortgage application reduces dramatically. If you do fit the application criteria for eligibility any mortgage offer may include the condition that the debt underlying the DMP must be settled on completion. So, if you have equity in your home sufficient to settle your DMP and satisfy any lender loan to value (LTV) criteria, remortgage may be an option you could consider to start getting yourself back to where you want to be with your credit record. But settlement of the DMP may not have to be a condition which will affect any affordability calculations as the lender will take into account debt owed and DMP monthly payments when performing proposed mortgage affordability calculations.

If the DMP has been settled

The longer the DMP has been settled the easier the placement of any mortgage becomes. If you have just settled your DMP you can expect LTV's to be below 85%, and, depending on how you managed your DMP, this could go as low as 75%. There are many factors that can affect your eligibility for mortgage application when a DMP is involved, so let us start checking your eligibility by getting in touch.

What if you have other bad credit

If you have a DMP registered within the last 24 months together with other bad credit registered on your credit report it is important you get in touch so we can start checking your eligibility for any mortgage application. It is important your application, or next application, is with the best mortgage option to dramatically increase your chances of being approved for a mortgage.

What now?

Simple, get in touch. Before you do you may want to enquire about your credit file as your mortgage adviser will more than likely ask you for it as it will form part of his research in finding your best mortgage choice. As with all mortgages there is no guarantee you will be accepted for mortgage following application but going through Lawrie Mortgages and letting us help you make the best mortgage choice will greatly increase your chances. Any successful mortgage application will rely on your own personal circumstances which will include your income and affordability as assessed by the respective lender underwriting.

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