The Debt Arrangement Scheme (DAS) only covers your unsecured debts, such as credit cards, loans and overdrafts. It does not include your mortgage, so being on a DAS debt payment programme does not by itself change your mortgage. It can still affect a remortgage, though, because a live programme is protected by law, and new borrowing while it runs generally needs your money adviser’s involvement.
This page looks at how a DAS programme works alongside a remortgage, both while it is running and if you want to use released equity to end it early. For the wider picture of Scottish credit issues, see our Scotland page, and for the nearest equivalent outside Scotland, see remortgaging with a debt management plan.
On this page
This page covers
In short
- DAS covers unsecured debts only. Your mortgage continues separately and is not part of the programme.
- Interest and charges on debts in a DAS programme are usually frozen while it runs.
- Creditors generally cannot take diligence against you while a programme is in force.
- A programme can sometimes end early if a lump sum, such as released equity, is enough to clear the balance.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
What a DAS programme does and does not cover
A debt payment programme under DAS brings your unsecured debts together into a single regular payment, usually made through an approved payment distributor who passes money on to your creditors. It is agreed with the help of an approved money adviser and overseen by the Scottish Government’s DAS administrator. Your mortgage is not included, because it is a secured debt, and you continue paying it as normal alongside your DAS payment.
| Debt Arrangement Scheme | Protected trust deed | |
|---|---|---|
| How much you repay | The debts included, usually in full | Often a proportion, with the rest written off at the end |
| Typical length | Varies, based on what you can afford | Usually around 4 years |
| Interest and charges | Frozen while the programme runs, and often written off once it completes | Frozen once the trust deed is protected |
| Protection from creditors | Diligence generally cannot be used while the programme is in force | Individual creditors generally cannot chase you separately once protected |
A general comparison. Ask an approved money adviser which options fit your circumstances, since this page is not financial advice.
Do you need agreement to remortgage while a programme is running?
A remortgage that simply replaces your existing mortgage, without raising extra money, is less likely to affect your DAS programme, but it is still worth telling your money adviser before you apply. If you want to raise additional borrowing, that generally counts as new credit, and taking on new borrowing while a programme runs without the necessary agreement can put your protection at risk.
- Speak to your money adviser before approaching a lender, even for a like-for-like remortgage.
- If you want to raise money, explain why and how it will be used.
- Keep your DAS payments up to date throughout the process.
Using a remortgage to end your DAS programme early
Some people look at remortgaging to raise a lump sum and clear the rest of their DAS debts in one go. If the amount is enough to pay off the outstanding balance, the DAS administrator may agree to end the programme early, in a similar way to receiving a windfall such as an inheritance. This is not guaranteed and depends on your circumstances, so check with your money adviser first.
Debts in a DAS programme usually have interest and charges frozen. Moving them onto a mortgage removes that protection and secures the debt against your home, and a longer mortgage term can mean paying more overall. Get advice before deciding.
What happens if a DAS programme is revoked?
A programme can be revoked if payments are not kept up, or if the terms are not met. If that happens, the protection from diligence ends, and creditors can pursue the debts, including interest and charges, in the usual way. This can also make a remortgage more difficult, since new defaults or missed payments may appear on your credit file. If you are struggling to keep up payments, contact your money adviser as early as possible rather than letting the programme lapse.
Free advice on DAS and other Scottish debt options is available from StepChange and MoneyHelper, as well as from your existing money adviser.
What may affect a remortgage on the Debt Arrangement Scheme
| Factor | Why it matters |
|---|---|
| Whether the programme is active or completed | An active programme usually needs your money adviser’s involvement before you remortgage. |
| Purpose of the remortgage | A like-for-like remortgage is generally more straightforward than one that raises extra borrowing. |
| Payment history on the programme | Keeping payments up to date matters, both for your protection and for how a lender views you. |
| Other credit issues | Defaults or missed payments from before or during the programme are assessed separately. |
| Equity and loan to value | How much equity you have affects whether raising money to clear the programme is realistic. |
| Mortgage payment history | Your mortgage runs alongside DAS, so keeping it up to date is important in its own right. |
| Income and affordability | Your DAS payment counts as an outgoing when a lender assesses what you can afford. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Your DAS approval date and a copy of your debt payment programme
- Your money adviser’s contact details, and their agreement if you plan to raise extra borrowing
- A recent statement showing your DAS payments are up to date
- Credit reports from Experian, Equifax and TransUnion
- Your mortgage balance, deal end date and any early repayment charges
- Proof of income and a summary of your other outgoings
Frequently asked questions
Does being on the Debt Arrangement Scheme show on my credit file?
It can. Creditors may report the accounts included in your programme as being in an arrangement, or show earlier missed payments or defaults with their own dates. Check your statutory credit reports to see exactly what is showing.
Can I remortgage without telling my money adviser?
It is not a good idea. Even a like-for-like remortgage is worth discussing with your money adviser first, and raising extra borrowing without the right agreement could put your DAS protection at risk.
Will paying off my DAS programme early with a remortgage improve my credit file?
It can help over time, since the programme completing is generally seen more positively than one that stalls or is revoked. The individual account entries still follow their own timings, though.
Is DAS the same as a debt management plan for mortgage purposes?
They work in similar ways, but DAS is a statutory Scottish scheme with legal protection from diligence, while a debt management plan is an informal arrangement without that same protection. Lenders may not treat them identically.