- 0330 043 3643
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- Fix Mortgages. The Enterprise Centre. Corporation St, Tamworth, Staffs B79 7DN.
Are you looking for a new mortgage with a current Debt Management Plan (DMP) in place?
We can still arrange a mortgage for you despite a debt management plan being in place currently.
The first and possibly the biggest barrier to getting a mortgage when you’re on a debt management plan (DMP) will be that your credit rating will now be effected.
A DMP means that you are likely to be paying less than the original contractual amount towards your debts, thus breaking the original credit agreements taken out before they were entered within the DMP, so this information will undoubtedly be recorded on your credit file every month.
There’s a few different ways a DMP can affect your credit score, sometimes the creditors within the DMP will mark that you are on a reduced payment arrangement, others might issue you with a formal default notice.
Generally, being in a DMP means that you are making smaller repayments every month than you initially agreed to, and over a longer period of time.
We have access to every mortgage lender who will take a personal grown up view enabling us to present your application to them with confidence.
A debt management plan (DMP) is an informal agreement that is made between yourself and your existing creditors to pay off unsecured debts in instalments over time.
It’s not a legal agreement and can be cancelled by either party at any time.
A DMP is often used when you are only able to make smaller monthly payments or have short-term financial issues and will be able to revert back to your normal repayments in a few month’s time.
It can be arranged either directly with a creditor or through a debt management company. If you go through a debt management company, you will have the option to put all your existing debts together and repay more than one creditor with one overall reduced monthly repayment.
DMPs cannot be used to repay ‘priority’ debts, these are normally classed as mortgage or rent arrears, utility bill arrears, council tax arrears, income tax or VAT arrears, TV licence arrears, court fines or maintenance arrears, or on hire purchase agreements, but will be commonly used to pay amounts owed toward credit cards, loans, mobile phone contracts or store cards.
There is no obligation for a creditor to agree to a DMP and they do not need to freeze interest or additional charges
A DMP is not listed separately to your existing credit items on your credit report. This is because a DMP is not declared on any official register unlike a bankruptcy or IVA.
Instead, the various creditors that are under the DMP will register your status regarding your financial account with them and will stick around on your credit file for 6 years.
No, your DMP isn’t a legal agreement, you are not tied into a DMP you are able to exit & cancel this at any point should you wish.
However, there is nothing blocking you from applying for a new mortgage while you are still paying into your DMP.
Some of our lenders may request a reference or statement from your chosen DMP firm to confirm you are paying into this on time.
There is no need to wait until the DMP has been paid off in full before you can apply for a mortgage.
However if it has been settled it will increase the lenders available to us and open up more options for you.
We have mortgage plans available starting with a 10% deposit
Mortgage lenders who will consider anyone in a DMP will not necessarily need you to have a certain credit score in order to agree your mortgage application.
There is no need to wait.
Speak with us on 03303438038 to book in a friendly no obligation 30 minute telephone appointment at your convenience.
Alternatively email [email protected] outlining your overall requirements.
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