Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.
Finding The Best DMP Mortgage Deal For Your Circumstances
When the options seem limited, and you're worried every mortgage lender is going to turn their back on you, our friendly team is here to help. We're specialist mortgage advisors with extensive experience in the poor credit history market. Dedicated to doing things differently, we're here for you when mainstream lenders are saying no. We'll keep things clear and simple, dispelling all the credit issues you might think you have during the process. Your homeowning ambitions are our priority, and we will put you in contact with bad credit mortgage lenders to achieve your dreams.
Can I get a mortgage with a debt management plan?
Yes. Whilst it is more difficult to get a mortgage with a DMP, and you may face a restricted number of options, it is possible to get bad credit mortgages. DMPs are informal agreements with creditors that detail the terms of an outstanding debt and how it will be paid back (usually in the form of monthly payments). Though they don’t directly contribute to a poor credit rating directly, they reveal that you have had difficulties managing loans resulting in missed payments.
Understandably, this will provoke caution in those considering whether or not to accept your mortgage application. The mortgage offers you receive are likely to have higher interest rates and may require a larger deposit, but this effect will lessen as time passes. Once all your debts have been paid off and the DMP repayments are complete, your credit file will begin to improve which will increase your eligibility across the market. However, even if you have an active DMP, there are lenders who will consider your case.
Does a DMP affect my credit score?
In itself, a DMP won’t harm your credit report, however, the circumstances leading up to taking out a DMP will. This might include several late payments and defaults, both of which will be recorded on your file. After 6 years, however, these incidents of adverse credit will be wiped, after which your score will begin to repair. If it has been less than 6 years or you are still paying back a DMP, you may find your options are limited, but that’s not to say you don’t have options. Talk to a friendly advisor today and we’ll assess the best next steps for you.
Maximise your chance of approval with specialist advice from an expert in Debt Management Plan (DMP) Mortgages
How do debt management plans affect mortgages?
A debt management plan (DMP) can complicate the mortgage process in various ways. Firstly, it may be more difficult for you to amass a big enough deposit with this regular monthly toll on your income. It also may mean you face higher interest rates than if you were debt free. Your options when it comes to mortgage deals and lenders to choose from will be significantly reduced depending on how long ago this took place.
However, if you can demonstrate through careful budgeting that you can handle money better now and are able to take on further monthly expenditures, some lenders may overlook your DMP and credit history. The best thing to do if you’re not sure about how your DMP will affect your mortgage plans is to talk to a member of our friendly team of mortgage experts. We’ll assess your situation, assign a mortgage broker and reco
Will my debt management plan make my mortgage more expensive?
An imperfect credit file will inevitably affect the number of high-street lenders who will consider you. As a result, you will require specialist mortgage lenders, who may offset the situation with your credit accounts with higher rates.
Amassing a larger deposit of around 15% can help combat this problem and bring the rate of interest down. If you’re worried about committing yourself to a bad deal, our expert mortgage advisors can review the terms and provide you with a costing review, making sure you’re adequately informed before you make any big decisions.
Mortgages with Debt Management Plan (DMP) - FAQs.
Mortgage with Debt Management Plan (DMP) Calculator
Specialist mortgage advisors for bad credit & DMPs.
Less-than-perfect credit is never ideal when it comes to finding a mortgage, but that doesn't mean it's an impossible task. When the Bank Says No has helped people all over the UK realise their ambitions to own a home by providing expert guidance, a host of useful tools and insights, and assessing and advising on the options available. With our team on your side, no debt management plan needs to get in the way of your finance applications. Whatever your situation, however imperfect your past relationship with credit, we can help you overcome the obstacles and achieve mortgage success.
Helping you climb the ladder.
The mortgage process can be frightening at times. If you don't know where to start looking for a mortgage with a DMP in place, our team of expert adverse credit advisors are here to show you the way and fight those fears. We're committed to providing independent, no-nonsense mortgage advice to people who need it most. You don't have to give up reaching for the property ladder with our friendly, experienced team on your side. In fact, it may be closer than you think.