A debt management plan (DMP) is an informal arrangement, not a legal insolvency, and it does not appear on your credit file as a single entry. What a lender sees instead are the underlying accounts: arrangement-to-pay markers, missed payments or defaults, depending on how each creditor has reported them. Raising extra money against your home while some of those markers are still recent brings the same combination as any raise-capital application with adverse credit, a higher loan to value alongside a cautious view of the file.
This page is about raising money for your own purposes, such as improvements or helping family, while on or after a DMP. If you want to use the remortgage to clear the DMP itself, remortgaging to clear a DMP covers that route.
On this page
This page covers
- Credit issue
- Debt management plans (DMPs)Usually stays on your credit file for depends on the individual accounts and markers.
- Reason for remortgaging
- Raising moneyBorrowing more increases your loan to value, which can change the options available.
Read the main guide: Remortgaging to release equity when you have bad credit
In short
- A DMP itself is not a public record, but arrangement-to-pay markers or defaults on the accounts within it usually are.
- A completed DMP, with the underlying markers aging, is generally viewed more favourably than an active one.
- Raising money at the same time as an active DMP usually narrows the options more than a completed one would.
- Free debt advice can help you weigh whether raising more money is the right step while managing other debts.
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 does a lender actually see on your file?
Because a DMP is informal, it is not recorded in the way a CCJ or an IVA is. Instead, each creditor decides how to report the account, which is often an arrangement-to-pay marker showing you are paying less than the contractual amount, or sometimes a default if the account was closed. A lender assessing a raise-capital application is really looking at these individual markers, not a single DMP entry.
That means two people on a DMP can have quite different credit files, depending on how their particular creditors have reported the accounts. Our guide on what is an arrangement to pay marker? explains how these are recorded.
Does an active DMP make raising money harder than a completed one?
Generally, yes. While a DMP is active, the underlying accounts often still show recent markers, and a lender may also want reassurance that a new, larger mortgage payment fits alongside your existing DMP contributions. Once a DMP has completed, the markers on the accounts involved start to age, and how the DMP ended, in full or by another route, can matter too.
| DMP status | What some lenders may look for |
|---|---|
| Active DMP | Often the most cautious category; some lenders may want to see the plan completed first |
| Recently completed | Can be viewed more favourably, though the underlying markers may still be recent |
| Completed some time ago | Generally the most straightforward, though markers still show for 6 years from when recorded |
| Stopped rather than completed | Usually viewed more cautiously than a plan that ran its full course |
Illustrative only. This is not the criteria of any specific lender.
Would the new payment fit alongside a DMP still running?
If your DMP is still active, a lender will want to see that the new, larger mortgage payment is affordable at the same time as your existing DMP contributions and any other outgoings, not just that it is affordable on its own. Being realistic about this before applying, rather than finding out during underwriting, can save a wasted application and a hard search that shows on your file.
It is also worth asking whether raising money now is the right step while still repaying other debts through a DMP, or whether it makes more sense to wait until the plan has completed. A specialist adviser, and a free debt adviser, can both help with that decision from different angles.
What should you weigh up before raising money on a DMP?
A DMP is there to bring existing unsecured debts under control. Raising extra money against your home is a new, secured commitment, and it does not replace or reduce what you owe under the DMP unless you specifically use the money to clear it.
- Whether the DMP is likely to complete soon, since waiting can widen your options.
- Whether the new payment is affordable alongside DMP contributions, if the plan is still active.
- What the money is genuinely needed for, rather than borrowing a round figure.
- Speaking to a free debt adviser first, especially if money is tight, via StepChange or National Debtline.
What may affect releasing equity when you have a DMP
| Factor | Why it matters |
|---|---|
| Whether the DMP is active or completed | A completed plan is generally viewed more favourably than one still running. |
| Markers on the accounts within the DMP | Arrangement-to-pay markers or defaults on individual accounts are what a lender actually sees. |
| How the DMP ended | Completing in full is usually viewed more favourably than stopping the plan early. |
| Amount you want to raise | A larger raise-capital request increases both your borrowing and your loan to value. |
| Affordability alongside DMP contributions | If the DMP is still active, the new payment must be affordable on top of it. |
| Maximum LTV for raise-capital with your credit profile | Some lenders set this lower where DMP-related markers are recent. |
| Mortgage payment history | A clean record on your mortgage can help alongside markers on other accounts. |
| Affordability of the larger mortgage | The new amount still has to pass an affordability check and stress test. |
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.
- Whether your DMP is active or completed, and its start and end dates
- Details of the accounts within the DMP and how each has been reported
- How much you want to raise and what it is for
- Your current mortgage balance, deal end date and any early repayment charges
- An estimate of your property’s current value
- Your credit reports from Experian, Equifax and TransUnion
- Proof of income and your main monthly outgoings, including any DMP contribution
Frequently asked questions
Can I release equity while my DMP is still active?
It can be harder, since a lender will usually want the new mortgage payment to be affordable alongside your existing DMP contributions, and the underlying account markers may still be recent. Some lenders may prefer to wait until the plan has completed.
Does a completed DMP still show on my credit file?
The DMP itself is not a public record, but the markers on the individual accounts, such as arrangement-to-pay markers or defaults, stay on your file for 6 years from when they were recorded, whether or not the DMP has completed.
Will using a remortgage to clear my DMP change how it is viewed?
That is a different situation from raising money for your own use. See remortgaging to clear a DMP for how that route works and the risk of securing the debt on your home.
Is it better to wait until my DMP completes before releasing equity?
Often, yes, since more lenders tend to consider raise-capital applications once a DMP has completed and the underlying markers start to age. If you need the money urgently, a specialist adviser can tell you what may still be possible while it is active.