how to deal with debt to get a mortgage

kennelkomp

hi guys hope you can shine some light on my predicament

i was in a very bad place a few years ago and got myself into debt no job, living in a bad area etc.

iv had some defalts on my record, 5 in total all combined for less than £1200

2 of them come offin the next 6 months and the other 3 come off in the next 2 years

iv now turned my life round and cant beleve iv been so stupid about money, i now live in a nice house and have a great paying job (making about £38,000 pa)

i plan to get a mortgage in a couple of years and was wondering if i should pay these debts off (morally i know i should) but if i do will this result in a note of satisfied being applyed to my account for the next 6 years?

also what if i offer full and final payment as i was sent letters saying they would accept about 30% payment, will this end in me having a new defalt added to my record?

any help here would be great and i know that it was my fault but i am trying my best to fix this

thanks charlie

ACG

Once they are shown as being satisfied your credit report will be better.

5 defaults is quite high, but you might be able to get a mortgage as they were a while ago. If you have a good deposit and looking for a small mortgage in comparison to your wage then you might not have too many problems.

But it would be best to get them satisfied, theyre not for huge amounts.

kennelkomp

thanks acg

just a quick question with full and final payments if you could,

iv got a credit card for £500 and they were willing to take a full and final payment of £180, if i did this would it come up settled or would it come up as defaulted for £320 and £180 settled.

iv seen things like this before and i wonder what is best to do thanks

Thrugelmir

Settle the debts in full. If you are seeking a mortgage.

Will reflect greatly on your credit record.

Lenders will never forget a bad debt. As they'll keep a record of this.

musketter

Sorry, but now earning £38K and trying to get out of paying £1200 worth of debt. Would you give yourself a mortgage ?

A lot of people got in trouble with money in their past, you are lucky enough to be able to settle it (Even if it takes a few months)

Purely my personal view !