Yes, you can get a mortgage with a debt management plan. When you’re applying for a mortgage, a lender will want to understand your current financial situation and assess your affordability, as well as any other issues on your credit report. Working with a specialist bad credit mortgage broker can help you to find the right lender who’ll present your application in a way that showcases the steps you've taken to repay your debts and to prevent the same issue from happening again.
There’s a few different ways a DMP can affect your credit score, and therefore, your mortgage application.
Some creditors (the people or company you owe money to) will request that a note is added to your credit file to show you’re on a DMP, whereas others might not.
Generally, being on a DMP means that you’ll be making smaller repayments every month than you initially agreed to, and over a longer period of time. That can sometimes go down on your credit report as making underpayments each month. Underpayments can cause issues for your credit report and make it harder to get a mortgage. That’s because it signals to other lenders that you broke the terms of your credit agreement and were unable to keep up with full monthly payments.
We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.
Unlike others, we only work on bad credit, self-employed and complex mortgages. That’s all we do. And we’re up for a challenge.
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