Debt Management Plan (DMP)
Informal agreement with creditors to repay debt at affordable rate.
Full definition
An informal arrangement with creditors, usually arranged via a debt management company, to repay outstanding debts at an affordable monthly rate. DMPs themselves don't directly appear on your credit file, but the underlying missed payments and defaults do. Specialist lenders accept active DMPs with 12+ months of evidenced payments.
How this affects you
Whether debt management plan (dmp) is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.
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