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DMP customer struggling to secure a residential mortgage? We’re on the case!

James Forth

James Forth - National Sales Manager

Published 14.03.2022

“I didn’t know there were lenders out there who accepted customers with a DMP.”

“I didn’t think my customer could apply for a mortgage while they were still on a DMP.”

“I thought a DMP had to be settled for at least a year before a customer could apply for one.”

These are just some of the reasons for not placing a case brokers have given me when they’ve been approached by a customer with a debt management plan (DMP).

Although they’ve been with us for around 30 years now, it seems there’s still a bit of confusion around DMPs and how they can affect customers looking for a residential mortgage.

If you haven’t come across one before, a DMP is an informal agreement between a customer who’s suffered a credit blip and their creditors. They cover non-priority debts for things such as credit cards, loans and store cards.

So I’m delighted to be able to tell you that we accept customers with active DMPs and DMPs satisfied within the last 36 months.

You might also be interested to know that we also accept the following adverse credit:

  • Defaults - 2 in 24 months (maximum £1,500 in 12 months, unlimited thereafter)
  • CCJs - 1 in 24 months (maximum £1,000 in 12 months, or £2,500 in 24 months)
  • Missed mortgage/secured loan arrears - 1 in 12 months, 3 in 36 months (worst status)
  • Unsecured arrears - Not counted, but may affect customer’s credit score

It’s all part of our commitment to making sure you’ve got access to diverse solutions and straightforward criteria that could help you place more of your customers’ cases. So if you need some support with a borrower who’s got a DMP and is struggling to find the residential mortgage they need on the high street, remember - we’re on the case!

To find out more, take a look at our residential mortgages product guide, speak with our sales team or call our dedicated support service on 0800 116 4385.

 

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