Arranging a remortgage after a satisfied Debt Management Plan (case study)

Arranging a remortgage after a satisfied Debt Management Plan

This case study explains how a remortgage was arranged for a borrower who had previously been on a Debt Management Plan (DMP) and had since completed it.

Although the borrower had not missed any mortgage payments, their DMP history meant that some mainstream lenders were unwilling to proceed. With the right lender selection and a clear presentation of the overall financial picture, a suitable remortgage option was found.

The borrower’s starting point

The borrower had completed a DMP after a period of financial difficulty. The DMP had been in place for around two years, following a downturn in circumstances.

By the time the remortgage was considered:

The DMP had been satisfied/completed.
The borrower had no missed mortgage payments.
There was significant equity in the property.
The borrower wanted to reduce monthly outgoings by consolidating other debts into the mortgage.

Why the initial applications were declined

The borrower first approached lenders directly for additional borrowing and/or a remortgage.

Even where mortgage payments have been maintained, a DMP can still be viewed by lenders as evidence of past financial pressure. As a result, some lenders may decline or require a more specialist approach.

The broker’s approach: focusing on the right lender and the full picture

A full review of the borrower’s circumstances was carried out, including:

Income and expenditure
The mortgage payment record
Details of the DMP (including that it was completed)
The purpose of the remortgage (to consolidate debts and lower outgoings)

The key step was matching the borrower to lenders that are more likely to consider satisfied DMPs, based on how those lenders assess credit history and repayment behaviour. The application was positioned around affordability and the fact that the DMP had ended.

The outcome: moving to a specialist lender

A remortgage was arranged by moving the mortgage to a specialist mortgage provider.

The new arrangement allowed the borrower to:

Consolidate the additional borrowing into the mortgage
Reduce monthly outgoings by replacing higher-cost debt with mortgage repayments
Put in place a repayment structure that could be reviewed again once the DMP-related period was further in the past

Product features that mattered

In this case, the mortgage included a fixed period of two years, giving time to review options again once the DMP was further behind them.

What this case study illustrates

This example highlights practical lessons for borrowers considering a remortgage after a DMP:

A satisfied DMP doesn’t always mean a straightforward application with every lender, even where mortgage payments have been maintained.
Specialist lenders may be more receptive to applications where the DMP has been completed.
Outcomes are often improved by matching the borrower to the right lender criteria, supported by a clear explanation of the financial position.
Consolidation can be a meaningful goal where it helps reduce monthly pressure—subject to the lender’s affordability assessment.

Arranging a remortgage after a satisfied Debt Management Plan (case study)