partial settlement help please.

edited 30 November -1 at 1:00AM in Credit File & Ratings
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shaqs77shaqs77 Forumite
7 Posts
edited 30 November -1 at 1:00AM in Credit File & Ratings
Hi guys I wonder if you can help please.

I have been reading and searching for about an hour and that has made me more confused.

I was in forces and when I left I had a mortgage and some debt in terms of a loan.

when I left in 2009 I couldn't find work so ran up debt in regards to credit cards and overdraft. I was in a bad place. My debts were sold on.

I managed to find work and with the help of the cab set up arrangements with my creditors. I never missed my mortgage payments.

for the last 2 years I have been working full time bringing in decent money. I called up cabot and mdrl asking for a resettlment figure. They have offered me a discount but did say it would be put down asa partial settlement.

I am looking to put my property on rent and purchase a new bigger property. Will this partial settlement affect my chances of getting a mortgage. I will have 15% deposit for the new property. Please help im at my wits end.

Replies

  • edited 31 October 2013 at 5:49PM
    TixyTixy Forumite
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    edited 31 October 2013 at 5:49PM
    Yes it is likely that partial settlements on your credit file will affect what credit/mortgages you can get whilstever they still show on your file.

    But its worth checking what is on your file now. It sounds likely you will have defaults marked on your file in 2009, possibly 2010.
    Those accounts and defaults will fall off your file 6 years after the default date, and that would also include any record of the partial settlement.
    So if you have an account with a default in 2009 then it will fall off your file in 2015 (whther settled, unpaid or partially settled)

    If you are making any settlement offers then its advisable to do so in writing. And its very important to get written confirmation from them before you pay that the money will be accepted in full & final settlement of the debt and that your credit file will be updated to show no balance is outstanding (even if they say your file will show as partially satisfied). Have a read on the national debtline website for their factsheet about settlements.

    Alternatively you may possibly be able to negotiate that the creditors will mark your file to show it as though it was settled in full if that is what you ask for in your settlement offer letter.
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  • ThrugelmirThrugelmir Forumite
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    shaqs77 wrote: »
    I am looking to put my property on rent and purchase a new bigger property. Will this partial settlement affect my chances of getting a mortgage. I will have 15% deposit for the new property. Please help im at my wits end.

    If you wish to move house anytime soon pay off your debts. Be an insane world if lenders wrote off money, only to lend you more.
    The "mark" on your credit file is the penalty you pay.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
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