DWP Debt management

harper2018

Hoping someone can help..

So me and my husband finally got a AIP with NatWest and we now had an offer accepted on a property , so now our mortgage application is going in.. & getting everything ready and downloaded out bank statements and have completely forgot about a payment plan I have with DWP for an overpayment from lockdown ( as I had to close for a number of months ) when DWP wrote me a letter to tell me they had overpaid me there was the option of paying it back in instalments which I took , as trying to get back on my feet after Covid. 

Its not on my credit file, so not down as a debt , my mortgage broker is off until Friday -and I'm panicking as I hadn't told him about this because its just been a bill that comes out and forgot about - will NatWest pick this up on my bank statements and decline out mortgage because of this? 

I can pay the amount off if they need me too - can that be something they ask of me? obvs id rather not as that money would be going towards the house we was buying , but if its going to affect me getting a mortgage then I defiantly will pay it?

Thank you

kingstreet

If the mortgage remains affordable when it is treated as a commitment, you'll be fine. If it isn't, get used to the idea of paying it off now. NatWest will want evidence of the funds to repay it, or perhaps even evidence of repayment before they will issue the offer.

harper2018

ahh amazing thank you , feel like I can breathe again , its only a small amount of £41 a month, and absolutely shouldn't affect our affordability - also I do have evidence of funds that could pay of the full amount 

ACG

Just to offer you some additional reassurance, as kingstreet says its just a commitment. Its not a debt management plan.