Top 6 lenders who will give you a mortgage while you are in a debt management plan

Adverse Credit Mortgages

Even with a current DMP, you could still get a mortgage offer

If you have or have had a debt management plan, you might be finding it hard to get a mortgage. High street lenders don’t want to know you if you have a debt management plan (DMP) in place, and most will shake their heads to those who have had a DMP in the last six years.

There are a few of things you must do to get a mortgage while you are in a debt management plan. You’ll need enough deposit, meet the affordability test and other criteria of the lender, and, of course, know which lenders to approach.

Who offers mortgages to people in a debt management plan?

There are a number of specialist lenders who will lend to you, but, as we’ve noted above, you won’t find them on the high street. You’ll need to work with a specialist mortgage broker with access to these lenders, because most won’t deal with mortgage applicants direct.

Who are the top mortgage lenders for people in a debt management plan?

We’ve selected six specialist lenders who provide great service and offer good mortgage products if you are in a debt management plan. There are others, and product mix is always changing.

These are our top six lenders for DMPs at the time of writing – but this list could change, as mortgage providers change their offers. Which is why you must use a mortgage broker with the best experience and widest range of lenders to choose from.

1. Bluestone Mortgages

Bluestone treats every one of its customers as an individual when considering whether to lend. They assess you and will consider your application favourably if your credit issues have been caused by a life event. They understand that life doesn’t always run smoothly, and your debt problems may have been unavoidable and through no fault of your own.

Bluestone provide mortgages to first-time buyers, home movers, buy-to-let investors, and to those seeking a remortgage. They usually make a fast decision, and also provide a very personal service.

2. Kensington Mortgages

Kensington Mortgages provides mortgages for a wide range of financial and personal circumstances, including:

  • Self-employed and contractors
  • Those whose incomes include a large percentage from bonuses or overtime
  • First-time buyers with a low credit score or historic credit issues

Kensington considers each application on its personal merits, understanding that there are many reasons you could have a low credit rating. Instead of focusing on your debt management plan, Kensington looks at the big picture, and how you are conducting your finances now.

3. Magellan Homeloans

Magellan provides mortgages for those with a variety of reasons for a bad credit score, including debt management plans. They use 100% manual underwriting and not credit scoring. Their mortgages are competitively priced, and they individualise by using flexible borrowing criteria.

You benefit from Magellan’s willingness to accept complex incomes, fee-assisted products with no upfront fees, great fixed-rate deals, and an underwriting process that considers life events on a case-by-case basis. Further, a mortgage range that includes no penalties for early repayment allows you to move to a cheaper mortgage when your credit score widens your choice of mortgage lenders.

4. Pepper Money

Pepper Money specialises in providing mortgages for people’s ‘interesting’ financial circumstances. They are on our list of top six bad credit mortgage lenders, and this year extended their range to include mortgages for those in debt management plans.

They could offer up to 85% loan-to-value, providing you have been current with your DMP for at least 12 months. They measure affordability based upon the original contractual loan repayments rather than the agreed monthly arrangement.

Mortgages available from Pepper include a very competitive two-year fixed rate, and they specialise also in first-time buyer mortgages.

5. Precise Mortgages

If you have a satisfactory 12-month history on an active DMP, Precise could offer you a mortgage with up to 85% loan-to-value.

The largest of the specialist lenders, Precise offers mortgages with some of the most competitive rates in the market, though the way it checks creditworthiness, which includes reference to credit scores, could mean that you must pay a higher interest rate than its headline rates. Precise has a very high rating for its customer service, with 95% of its customers happy to recommend to family and friends.

6. Aldermore

It may be possible to secure a mortgage with Aldermore with a deposit of as little as 5% of the value of the property, and they will give mortgages to the self-employed and contractors. Often, you’ll get a decision within hours of completing your application. Their mortgage products include fixed-rate mortgages over two, three, and five years.

Among these six specialist lenders, we’re likely to find the perfect mortgage if you currently have a debt management plan. To get the mortgage you want, contact Mortgage Thoughts today and let us help you with the best advice and widest access to the mortgage products you need.

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