While a debt management plan (DMP) might assist you in taking charge of your debt, it may also impact your credit profile, reducing your chances of getting a mortgage. It would be unfair if many borrowers believed getting a mortgage with a DMP was impossible. You may still apply for a mortgage if your DMP is ongoing or complete.
In contrast to an ongoing DMP, obtaining a mortgage is smoother with a closed DMP. However, both options are viable, particularly when handled effectively. Along with your DMP, lenders will also evaluate your credit score, income, LTV, and affordability. This guide will tell you whether you can get a mortgage with DMP or not.
How can I get a mortgage with DMP?
You may believe the chances of getting a mortgage with DMP are slim. While this is partially correct, the DMP mortgage approval process is zigzagging.
Most lenders would reject you if your DMP were active within the previous six years. Furthermore, brokers may mislead you into believing you will not qualify for a mortgage with DMP. This may be because they are limited to a specific group or lack expertise in situations involving financial problems.
You will probably need a specialized lender if you need a mortgage with a DMP. If a consultant has unrestricted access to the whole market, it will also benefit you. Advisors with knowledge of debt-related issues may also be quite helpful.
Never approach a lender directly, as this will decrease your chances of approval. If you take this step, you will take the most dangerous step. This is because getting rejected might result in further problems with your credit report.
We are at MortgageKey are here to help you how to get out of these difficult situations. Get in touch foe expert advice.