The mortgage is only available through a fully packaged route which currently is via Brightstar or the Precise Mortgages Premier Packager panel.
Borrowers with a current debt management plan will be considered for a loan up to 75% loan-to-value (LTV) while those who have satisfied the plan over 36 months ago will be considered up to 85% LTV.
The product has been designed to help borrowers who are trapped with their existing lender because of their current credit history. The debt management plan mortgage can be used to either remortgage or move house and will act as a credit repair tool to clean up borrowers’ credit profiles.
Clive Willson, business development director at Brightstar, said there was a real demand for this type of mortgage as thousands of people who had previously held a plan or were paying off a plan were locked out of the mortgage market.