First-Time Buyer Mortgage Approved After a Completed Debt Arrangement Scheme
A case study showing how first-time buyers secured a mortgage after completing a Debt Arrangement Scheme, with foster income and a gifted deposit.
- Publication date
- Case ID:
- 35925032
Question:
"Can I buy my first home if I've had a settled Debt Arrangement Scheme and some of my income comes from fostering?"
Customer situation
Joint application
First-time buyers
Both applicants in permanent employment
Around 15% deposit gifted by parents
Standard residential property
Debt Arrangement Scheme (DAS) registered in mid-2021, which was fully completed in early 2025
Why This Wasn't Straightforward
This case was more complex due to:
- A recently completed Debt Arrangement Scheme
- A long history of missed payments, even though these had been resolved
- Use of foster income, which many lenders restrict, cap, or exclude entirely
- A gifted deposit, requiring specific lender criteria
These factors significantly reduced lender options and ruled out most high-street lenders.
The Outcome
Mortgage approved.
A lender with experience of adverse credit and non-standard income took a practical, holistic view, recognising the completed DAS, improved recent credit conduct, and the stability of the household's income when assessed as a whole.
Key points
- Loan-to-value
- Approximately 85%
- Mortgage term
- 35 years
- Lender type
- Specialist lender
- Mortgage Adviser
- Aaron Barthorpe
Who This May
Be Relevant For
First-time buyers seeking a mortgage after completing a Debt Arrangement Scheme (DAS)
Applicants worried a recently completed DAS still affects mortgage eligibility
Buyers with historic arrears linked to a DAS that have since been resolved
Applicants declined for a mortgage due to past DAS history rather than current affordability
Plain-English Summary
This case shows that even with a Debt Arrangement Scheme and foster income, buying your first home can still be possible. What matters is how the full situation looks today, not just what appears on a credit file. Outcomes always depend on individual circumstances.