Bad Credit • Remortgage
On a Debt Management Plan (DMP)? You might still be able to remortgage. Lenders care about two things most: equity and clean conduct since the plan began. Here’s how active vs settled DMPs are assessed, the equity sweet‑spots, and what to prepare.
Pillar guide: For the full picture on products, pricing and lender appetite, see → Remortgage with Bad Credit.
What Is a DMP?
- An informal agreement with creditors to repay debts at a reduced rate (not legally binding like an IVA or bankruptcy).
- Usually appears on your credit file and can affect borrowing.
- Consistency matters: on‑time DMP payments strengthen your case.
Can You Remortgage with an Active DMP?
- Yes, with restrictions: a handful of specialist lenders accept active plans.
- Expect lenders to want at least 5–10% equity, sometimes more depending on the size of the plan and conduct.
- Pricing may be higher and lender choice smaller while the DMP is active.
Remortgaging After a Settled DMP
- More lenders open up 1–2 years post‑settlement, especially with clean credit since.
- At 6 years from the start date, DMP markers typically fall off your credit file.
- With strong equity and affordability, pricing can move closer to mainstream.
Equity & Loan‑to‑Value (LTV) Considerations
- The more equity, the safer the case appears. 25%+ equity opens up many more options, even with an active DMP.
- Under 10–15% equity can be challenging but isn’t always a dead end.
In or just finished a DMP?
We’ll check which specialist lenders may accept you today.
Practical Steps
- Keep all DMP payments on time; avoid new credit.
- Check all three credit files and correct any errors.
- Build equity where possible; reduce other commitments.
- Gather documents: ID, proof of address, income, and DMP statements.
- Use a broker – only a few lenders accept DMP cases and criteria change frequently.
Check all three credit files in one place
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“I was in a DMP and assumed remortgaging was off the table. Honest Mortgages found a lender who accepted me with 10% equity.”
FAQs – DMP and Remortgaging
Can I remortgage with an active DMP?
Yes, but expect a smaller lender pool and higher pricing. Equity and clean conduct are key.
Do I need to settle the DMP first?
Not always. More options appear once settled, but some lenders will consider active plans.
How long after a DMP before I can remortgage?
Many lenders prefer 1–2 years after settlement, though a few consider sooner.
How much equity do I need?
Typically 20–30%+ for the widest choice, though some lenders accept less.
Will my rate be higher?
Usually while the DMP is active; pricing tends to improve as your LTV drops and credit cleans up.
Can I remortgage to clear my DMP?
Sometimes, yes. A few lenders allow consolidation to settle a DMP if affordability stacks up.
