Applying for mortgage with old debts

TheHairyDebtor

Hi all, My credit score is good and I want to clear all of my debts so that I can get a mortgage.

If I am unable to come to an agreement with some of my creditors for F&F settlement do you think it would be ok to continue to pay what I can and still apply for a mortgage?

I am worried that the outstanding debts (although no longer showing in my credit report) might effect my chances of getting a mortgage and also I don't know if my creditors could then come after me once they know that I am a home owner.

Any and all help is greatly received.

Thanks
THD

matttye

You'll be in a much better position to buy a house once you've sorted out your debts, so concentrate on that first.

Are you paying any interest on your debts? If you are, it would be in your best interests to just pay them in full if your creditors won't accept any F&F settlements.

Thrugelmir

TheHairyDebtor wrote: »

If I am unable to come to an agreement with some of my creditors for F&F settlement do you think it would be ok to continue to pay what I can and still apply for a mortgage?

Lenders will decline your application if your debt problems are that severe, likewise settling with F&F will also result in a decline.

One suspects that affordability will be the issue. Lenders are now very thorough on this point. As it is they are who are responsible for borrowers not over extending themselves.