DMPs and homeownership
A DMP is an informal arrangement covering unsecured debts. Your mortgage is a secured debt against the property and is not included. As long as you continue to pay your mortgage, the property is unaffected.
There is no equity release clause in a DMP (unlike an IVA where year 5 remortgage attempts are standard). Any equity you build up during the DMP is yours.
Mortgage arrears
If you are behind on mortgage payments, those arrears sit outside the DMP as a priority. You would need to negotiate directly with your mortgage lender — usually agreeing an affordable arrears repayment plan on top of your ongoing mortgage.
Mortgage lenders generally prefer this direct approach and can be flexible where genuine hardship is shown. A regulated debt help specialist can help structure this.
Remortgaging during a DMP
Remortgaging is technically possible during a DMP but practically difficult. Most mainstream mortgage lenders will decline based on the defaults on your credit file. Specialist adverse-credit lenders may consider you at higher interest rates.
Most DMP holders wait until after the DMP completes and defaults have dropped off before considering a remortgage.
Selling and moving
You can sell your home during a DMP. The proceeds belong to you and any equity released can be used as you choose — for a lump sum settlement to creditors, moving costs, or other purposes.
This is different from an IVA or bankruptcy where equity from a sale may need to go into the insolvency estate.