After completing a DMP, follow these steps to improve your chances of securing a mortgage:

1. Review your credit report: Ensure all your personal details are accurate and that you’re registered on the electoral roll. Correct any errors or defaults for settled debts.
2. Start rebuilding your credit: Take small, manageable credit lines and make payments on time. Consider a credit card with a low limit to help rebuild your credit history.
3. Save for a larger deposit: Aim to save at least 5–15% of the property value. A larger deposit can help offset your credit history and increase your chances of approval.
4. Consult a broker: If your DMP is recent (within six years), a specialist broker can connect you with lenders who offer products for those with credit issues.

This checklist is a guide to help you navigate the applying for a mortgage with a DMP:

1. Review your DMP details: Make sure your payments are up to date.
2. Check your credit report: Ensure your report is accurate and free from errors.
3. Consider paying off your DMP early: This can improve your credit profile and open more mortgage options.
4. Start saving for a larger deposit: A larger deposit can help secure better mortgage rates.
5. Consult a specialist mortgage broker: We can help connect you with lenders who specialise in helping people apply for mortgages with a DMP.
6. Prepare your documents: Ensure you have recent payslips, bank statements, and details of your DMP.
7. Get a mortgage in principle (MIP): We’ll help you get a mortgage in principle to show sellers and estate agents you’re a serious buyer with lender support.
8. Submit your full mortgage application: When ready, we’ll guide you through submitting a complete and accurate application to avoid delays.
9. Prepare for additional scrutiny: Lenders may ask for additional details to fully understand your financial situation – don’t worry, we’ll be with you every step of the way.
10. Close the deal: Once approved, finalise the mortgage with a DMP and start the exciting journey to homeownership or remortgaging.

Start by tracking your income and expenses to get a clear picture of your finances. A well-planned budget can help you identify areas where you can cut back and redirect funds toward savings or paying off existing debts.

Look for opportunities to reduce discretionary spending – things like dining out, subscriptions, or impulse purchases. Redirect the money you save into a dedicated savings account for your deposit or to pay down your existing debts. Even small sacrifices can make a significant difference in the long run.

One of the biggest factors affecting affordability is how much debt you already have. Prioritise clearing high-interest debt, as it can have a serious impact on your overall monthly expenditure. If you have loans or credit card balances, consider paying them off or consolidating them into lower-interest options if possible to improve your chances of being accepted for a mortgage with a DMP.

If your current income isn’t sufficient to cover your living expenses and future mortgage payments, consider looking for ways to increase your earnings. This could involve taking on extra work, freelancing, or finding a side hustle. Even small increases in income can improve your affordability ratio and make you a more attractive candidate to lenders.

The more you can save for a deposit, the better your chances of securing a mortgage with a DMP. A larger deposit reduces the lender’s risk and may help you secure a better deal, including lower interest rates. Aim for a deposit of at least 5–15%, especially if you’ve had credit issues.

If you’re using credit cards or loans, try to keep your credit utilisation below 30%. This is the ratio of how much credit you’re using compared to your total available credit limit. A lower utilisation rate makes you appear more financially responsible and can improve your credit score over time, increasing your chances of securing a mortgage.

With limited lender options available to those with credit issues or active DMPs, working with a specialist mortgage broker can be invaluable. A broker will be able to connect you with lenders who offer products specifically for people in your situation, improving your chances of approval for a mortgage with a DMP. They’ll also help you navigate the complex affordability calculations and find the best deal for your financial situation.