Bad Credit • Right to Buy
Being in a Debt Management Plan (DMP) doesn’t automatically stop you from getting a Right to Buy (RTB) mortgage. Some specialist lenders are willing to consider your application, especially if you’ve been consistent with your payments and the plan has been running smoothly for a while.
Key takeaways
- You can sometimes get a Right to Buy mortgage while in a DMP – but it’s lender specific.
- Lenders will look closely at your payment conduct and how long the DMP has been running.
- Your Right to Buy discount can act as equity, reducing lender risk even if you’re in a DMP.
What Is a DMP?
- A DMP is an informal agreement with creditors to pay back debts at a reduced rate.
- It helps manage multiple debts by combining payments into one affordable monthly amount.
- It’s not legally binding, but it’s recorded on your credit file while active.
Can You Get a Right to Buy Mortgage While in a DMP?
- Yes, potentially. Some specialist lenders will consider applicants in an active DMP.
- Lenders assess the length of your DMP – longer, well-maintained plans improve your chances.
- Clean payment conduct during the plan is essential – missed payments reduce approval odds.
- Your RTB discount can often be treated as your deposit or equity.
If your DMP is nearly complete, you may gain access to a wider range of lenders once settled.
How Lenders View Active DMPs
- Positive indicators: Consistent payments, no new defaults, good affordability.
- Negative indicators: Missed DMP payments, increasing debt, or very recent defaults.
- Time in plan: 1–2 years of clean history shows financial stability.
- Affordability: Lenders will stress test income against DMP repayments and mortgage costs.
Case Studies
Case A – Active DMP, Clean Conduct
Sarah has been in a DMP for 3 years, paying £200 a month consistently. With a 40% RTB discount and no new credit issues, she secured a mortgage through a specialist lender.
Case B – Recently Completed DMP
Ben finished his DMP 8 months ago. Because his plan was settled and his credit improved, he qualified for a better rate than active DMP borrowers.
Practical Steps if You’re in a DMP
- Check your credit reports to ensure accurate DMP information.
- Stay on top of DMP payments – consistency is key.
- Avoid taking on new credit during your plan.
- Keep affordability strong – show stable income and spending habits.
- Use your RTB discount to strengthen your application.
- Work with a broker – most lenders who accept DMPs operate via brokers only.
Check all three credit files in one place
Use our partner link to view your data across agencies. This won’t harm your score.
FAQs – Right to Buy and DMPs
Can I get a mortgage while still in a DMP?
Yes, some specialist lenders accept active DMPs if your conduct is clean and affordable.
Do I need to settle my DMP first?
Not always. Settlement broadens your options, but many lenders will still consider you while the plan is active.
Does being in a DMP affect my credit score?
Yes – it’s recorded on your file and may lower your score, but clean conduct helps rebuild it over time.
Can I use my Right to Buy discount as my deposit?
Yes. Most RTB lenders count the discount as equity instead of requiring cash deposit.
Will high street banks accept me with a DMP?
Usually not. You’ll likely need a specialist lender who handles complex credit.
