Pay off Debt Mgmt Plan before mortgage - or not?

Whiterosegaz

Hoping someone can give us some advice. I have a debt management plan covering around £10000 due to run for another 5 years however I may be in the position to be able pay off shortly. We are hoping to then save for a deposit for a mortgage. I’m hearing mixed advice over wether to pay off the DMP or wether to use the 10k to boost the deposit. Surely getting out of the DMP will look better to mortgage companies?
any advice greatly received.

[Deleted User]

It surely would.

Thrugelmir

Highly advisable. 

jonesMUFCforever

With a DMP  round your neck it is very unlikely that you would get a mortgage at all.

Yahoo_Mail

jonesMUFCforever said:

With a DMP  round your neck it is very unlikely that you would get a mortgage at all.

At the very least, it would count against them for affordability.

floppydisk1

Also with DMP on your credit file, if you do manage to get a mortgage ( and that is a big , full fat IF ) , interest rate you'll be offered will be higher that ideal so it will cost you a lot more over the mortgage term than 10k  you 'll be able to use to boost your deposit. I'd pay it off, and save bit longer to replace 10k or close to that, and it will save you at least 2 - 3 x   that 10k .