Mortgage Approved With an Active Debt Arrangement Scheme (DAS)
A case study showing how home movers secured a mortgage while on an active Debt Arrangement Scheme, with all payments maintained.
- Publication date
- Case ID:
- 275725025
Question:
"Can I get a mortgage if I'm on a Debt Arrangement Scheme but I've kept up all my payments?"
Customer situation
Joint application
Home mover
Both applicants in permanent employment
Two employed incomes, one including a military pension
Around 67% deposit from the sale of an existing property
Standard residential house
An active Debt Arrangement Scheme, with all payments maintained as agreed. The credit file showed one small satisfied default and one low-value unsatisfied default
Why This Wasn't Straightforward
Lender choice was shaped by:
- An active Debt Arrangement Scheme, which many lenders automatically decline
- A loan showing ongoing arrears because it was included in the DAS
- Recent defaults, even though they were low value and limited in number
This meant the application required a lender willing to understand how DAS arrangements are reported and to look at overall financial behaviour rather than automated credit scoring alone.
The Outcome
Mortgage approved.
A lender experienced in adverse credit took a balanced, common-sense view, recognising that the customer had taken control of their finances, maintained all agreed payments, and had strong fundamentals including stable employment and a large deposit. The application was assessed on the full picture, not just the presence of a DAS.
Key points
- Loan-to-value
- Approximately 33%
- Mortgage term
- 25 years
- Lender type
- Specialist lender
- Mortgage Adviser
- Luke Jacobs
Who This May
Be Relevant For
Applicants applying for a mortgage while on an active Debt Arrangement Scheme (DAS)
Home movers concerned that a current DAS automatically rules out mortgage approval
Borrowers whose credit file shows arrears due to agreed DAS payment arrangements
Applicants who have maintained all DAS payments but have still been declined elsewhere
Plain-English Summary
This case shows that being on a Debt Arrangement Scheme doesn't automatically rule out a mortgage. Where payments are being maintained and the wider situation is strong, lenders may still take a practical view. Every case depends on its own details.