An active debt management plan (DMP) means you are still making reduced payments to your creditors under the arrangement, rather than having completed it. Remortgaging while it is active is not ruled out, but the choice of lenders is generally narrower than once the plan has finished, and your monthly DMP payment is treated as a committed outgoing when a lender works out what you can afford.
This page looks specifically at what "active" means for a remortgage. If your plan has finished, see remortgaging after a completed debt management plan. If you want to use a remortgage to clear the plan itself, see remortgaging to clear a DMP.
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.
- Status
- Not yet settledOutstanding balances usually narrow the options, and some lenders may expect them to be cleared as part of a remortgage.
Read the main guide: Remortgaging with a debt management plan
In short
- An active DMP is treated as a committed outgoing, which affects how much a lender may consider affordable.
- Fewer lenders are likely to consider an application while the plan is still running.
- How long the plan has run and how consistently you have paid both tend to matter.
- Tell your DMP provider before you remortgage, particularly if your income or outgoings will change.
What counts as an active debt management plan?
A plan is active for as long as you are still making the agreed reduced payments and it has not been formally closed. This is true whether you are a year into a long plan or close to the end, and it is also true whether some accounts within it have already settled while others continue.
Because a DMP is informal, there is no fixed start or completion certificate as there would be with an IVA. What a lender actually sees is the pattern of markers on each account, alongside whatever you or an adviser tell them about the plan itself.
What do lenders tend to look at with an active plan?
| Point | Why it may matter |
|---|---|
| How long the plan has run | A longer, steady record can suggest more stability than one only recently set up |
| Payment consistency | Missed or reduced DMP payments beyond the agreed amount are likely to count against you |
| Balance remaining | A plan close to finishing may be viewed differently from one with years left to run |
| Number of creditors involved | Several accounts in the plan can mean several markers or defaults for a lender to consider |
General points some lenders may look at, not fixed criteria. Every lender sets its own approach to an active plan.
How is your DMP payment treated in a mortgage assessment?
Your monthly DMP payment is usually counted as a committed outgoing, in the same way as a loan repayment or a car finance instalment. This reduces the amount a lender may consider you can put towards a new mortgage payment, particularly once the lender applies its own stress test on top.
If your income has changed since the plan started, for example a pay rise, your DMP provider may recalculate your payment, which can affect this figure. Getting an up-to-date DMP statement before you apply helps an adviser present accurate numbers.
Should you tell your DMP provider before you remortgage?
Yes. Your DMP is based on your current income and outgoings, and a new mortgage payment, whether higher or lower, changes that picture. Your provider may need to adjust your plan, and if you are raising money to change your circumstances significantly, they will want to know.
Unlike an IVA, your DMP provider cannot block a remortgage, since a DMP has no formal power over your finances. Even so, keeping them informed helps the plan continue to reflect your real circumstances and avoids confusion with your creditors later.
What if you want to keep your DMP running rather than clear it?
Not everyone wants to end their DMP through a remortgage. Some people are close to finishing and would rather wait, others prefer to keep unsecured debt separate from their home. If you are simply looking for a new mortgage deal, for example because your fixed rate is ending, a product transfer with your current lender is often worth comparing first, since lenders can often switch existing customers without a full affordability assessment where you are not borrowing more.
If you are instead considering using the remortgage to clear the DMP itself, our page on remortgaging to clear a DMP sets out the trade-offs in more detail.
What may affect a remortgage with an active DMP
| Factor | Why it matters |
|---|---|
| Length of time the plan has run | A longer, consistent record can be viewed more favourably than a plan only recently started. |
| Payment record | Payments made in full and on time under the plan’s terms usually count in your favour. |
| Balance remaining | How much is left to repay can affect both a lender’s view and your own affordability. |
| Markers on individual accounts | Arrangement to pay markers, missed payments or defaults on accounts in the plan are assessed individually. |
| Income and affordability | Your DMP payment counts as a committed outgoing when a lender works out what you can afford. |
| Mortgage payment history | Many people on a DMP keep their mortgage separate and up to date, which supports an application. |
| Property value and loan to value | A lower LTV generally widens your choice of lenders, whatever stage your DMP is at. |
| Employment type | Self-employed income is assessed differently. See self-employed bad credit remortgages. |
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.
- The name of your DMP provider and when the plan started
- Your latest DMP statement showing payments and balances
- A list of creditors in the plan and the amount owed to each
- Credit reports from Experian, Equifax and TransUnion
- Your mortgage balance, deal end date and any early repayment charges
- Proof of income and your current monthly outgoings
Frequently asked questions
Can I remortgage while I am still paying into my DMP?
It can be possible, though the choice of lenders is usually narrower than once the plan has finished. Your DMP payment counts as a committed outgoing, and lenders tend to look at how consistently you have paid, alongside anything else on your credit file.
Would pausing my DMP help me remortgage?
It is unlikely to help and could work against you, since a pause may itself be recorded as a change in your payment pattern. Lenders generally prefer to see a consistent record rather than a plan that has been stopped and started.
Does being on an active DMP automatically show as a default?
No. A DMP is informal and not itself a public record. What shows are the individual account markers, which creditors decide how to report, and these may or may not include a default depending on the account.
Can I add my DMP debts to a new mortgage while the plan is still active?
Sometimes, through what is often called clearing the plan with a remortgage, but this secures previously unsecured debt against your home. See remortgaging to clear a DMP for the risks and how it tends to work.
What if my DMP payment has changed since it started?
Ask your provider for an up-to-date statement before applying. Lenders and advisers need the current payment figure, not the original one, to assess your outgoings accurately.