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  • FIRST POST
    • wheelie_haes
    • By wheelie_haes 1st Sep 17, 9:23 AM
    • 7Posts
    • 0Thanks
    wheelie_haes
    Mortgage / Defaults
    • #1
    • 1st Sep 17, 9:23 AM
    Mortgage / Defaults 1st Sep 17 at 9:23 AM
    Hello,

    First time buyer here. Self employed for many years, with chartered accounts.
    The only problem is I have 2 unsettled Capital One defaults - £600 (03/14) & £300 (06/15). (I had an argument with Capital One, took the higher ground and dug my heels in, which was clearly stupid looking back!)

    Anyway, do I need to settle these defaults? I am led to believe it won't improve my credit score as the default will still show for the 6 years, however both defaults are over 2 years old so wondered if lenders would be more favourable if they were settled, or not? I am happy to clear them, just checking if that is the best thing to do.
    I have a Barclaycard and Tesco MasterCard I use and pay off in full monthly.

    I have a 20% deposit, just wondered how difficult it could be with a poor credit score and old defaults?

    Cheers
Page 1
    • zx81
    • By zx81 1st Sep 17, 9:26 AM
    • 14,154 Posts
    • 14,849 Thanks
    zx81
    • #2
    • 1st Sep 17, 9:26 AM
    • #2
    • 1st Sep 17, 9:26 AM
    Settled defaults obviously look better than unsettled. Lenders prefer applicants who don't just walk away from debts.

    Your credit score is neither here nor there, so make sure you ignore that.
    • ACG
    • By ACG 1st Sep 17, 11:13 AM
    • 15,788 Posts
    • 8,088 Thanks
    ACG
    • #3
    • 1st Sep 17, 11:13 AM
    • #3
    • 1st Sep 17, 11:13 AM
    Settled defaults will look better, but if you are settling them a month or 2 prior to application then it probably wont make a huge difference once way or the other.

    That being said, you shouldhave options but it will not be for every lender.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • wheelie_haes
    • By wheelie_haes 11th Sep 17, 12:36 PM
    • 7 Posts
    • 0 Thanks
    wheelie_haes
    • #4
    • 11th Sep 17, 12:36 PM
    • #4
    • 11th Sep 17, 12:36 PM
    Thanks. Should I pay full amount or haggle for a settlement figure, seeing as they are 3 years old. If settlement what percentage of debt is generally accepted?
    • ACG
    • By ACG 11th Sep 17, 2:19 PM
    • 15,788 Posts
    • 8,088 Thanks
    ACG
    • #5
    • 11th Sep 17, 2:19 PM
    • #5
    • 11th Sep 17, 2:19 PM
    If you are satisfying them, satisfy them. If not then it wont help having a partially settled figure.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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