Charging order offer of payment
lfearnley1
Posts: 10 Forumite
Hello, has anyone had experience with making an offer on a charging order? My old credit card company has agreed to accept £3500 on a £5000 debt. I eventually want to apply for a mortgage on my own (current has ex husband on but mtg company refused to remove him) they have said they will mark the payment as partial settlement but I read on another forum that this can negatively affect a mtg application and to try to negotiate a full settlement. Not sure if I'm in the right area of the forum as I'm still new! Thanks in advance.
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Comments
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Hi,
A full settlement would mean paying the full outstanding balance.
A partial settlement would mean paying the amount they are offering you.
They are different things completely.
Remembet, the default will only be on your file 6 years, settled or not, so once it's gone from your file, it's gone forever.
Make sure if you accept there partial offer, that removal of the charging order be a condition of settlement.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi
Whether a partially settled debt affects a mortgage application or not is down to the individual lender. For some it may be an issue and for others possibly not. As sourcrates says, the default will drop off your credit file after 6 years regardless.
Presumably you also have a CCJ on your credit file, which is likely to make mortgage applications more difficult while it’s on there anyway.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Yes, nationwide took it to court which made it a ccj too. The broker told me that the potential lenders had been put off by it and asked me if I could take out a loan to pay it off - dad has offered some money - thanks for replying0
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Using a mortgage broker if you have any credit referencing issues is a good idea, which you've already done. They should know what the mortgage lenders they work with will find acceptable, so you could ask them about the partial settlement too if you haven't already.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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