Are mortgages possible whilst in a debt management plan?

Yes, they are, but there are a number of considerations. For instance, it will be more difficult if the debt management plan has been running less than 2 years and it has lots of creditors within it.

The main reason for this is that the creditors that are party to the DMP will default your accounts even though an agreement has been made to pay a lower monthly payment.  This is because you are not actually paying the monthly payment that was agreed when taking out the credit commitment initially. These defaults are more of an issue than the DMP itself.

If you are after a Shared Ownership Mortgage, these are not available for people who are currently in a Debt Management plan.

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