A Debt Management plan is a formal agreement between yourself and your creditors to pay back the debt owed on reduced terms. It usually involves putting a freeze on interest and lower monthly repayments.
A DMP is set up through a third party company such as stepchange or credit fix. Although if you are reading this, the chances are you are well aware of what a DMP is. I do not plan on going into too much detail on what a DMP is. I imagine if you are looking for a mortgage with a DMP you know what it is. However the research section below you may find interesting.
Later on in the post, there are some Success stories of people who may have been in a similar situation to yourself. These are people who we have been able to help in the past.
Research on DMPs
In 2023 and 2024 Pepper Money conducted research on adverse in general. When it comes to Debt Management Plans however, they found:
- Around 6% of the population had been in a DMP in the last 3 years (up from 3% the year before). This is over 3 million people in the UK. As a Mortgage brokers who does a lot of adverse, I was not aware it was this many people.
- The increase is in part down to the increase in the cost of living in 2023-24.
- The most common reasons cited for entering a DMP would include – loss of job, Illness, death of a relative or divorce.
- According to research carried out by Bluestone in 2024, 36% of people were unaware that a broker could help them with adverse.
Can we help?
We can certainly try! Many people think adverse is embarrassing or something to be ashamed of. You might be surprised to hear that we have customers on minimum wage right through to professionals on 6 figure salaries.
It is not uncommon for us to speak to people who have been told they can not get a mortgage with bad credit. That could be by a friend or relative or in some cases other mortgage brokers! If that were the case, I think we would be out of business (instead we are closing in on 15 years!).
We have seen people with DMPs, defaults, bankruptcy and so on since 2013. There is no judgement, there are no deep sighs (the ones a dodgy mechanic might make when you go in with something minor… none of that!). You have likely already been through the mill, you do not need any more of that.
If you take nothing else from this page, please get in touch – even if it is just via the contact form. We are a small business, our customers. We have had people crying down the phone on the first conversation and then full of laughs at the end – thats what we like doing.
Success Stories
DMP Success story from 2023. This DMP was caused by applicants who had a baby and their income dropping to maternity pay not being enough.
Another DMP Success story from 2022. This was at a rate of 2.95%! Admittedly this was before rates went up. But it does show that it is possible to get a mortgage with a DMP at normal rates. This one was caused by redundancy.
A self employed DMP application from 2019. This was a self employed applicant in a DMP where the business was also close to failing if we could not sort this out. I know what your thinking, why am I giving you an example from 2019, how can it be valid now? It just shows that we have been getting mortgage offers for people in DMPs for at least 6 years.
Summary
Without being big headed, we know our stuff.
- We believe we can help (why else would we have articles on getting a mortgage with a DMP?
- We have been doing it since 2013,
- We have the Success Stories from past clients.
Regardless of whether we are first broker or the 101st, get in touch. Lets have a chat, you have nothing to lose.