Morgage Application after dopped off defaults

DMP1

Hi


I recently came to an agreement with 3 separate creditors on long term outstanding balances (all of which defaulted in 2007/2008 and were in a DMP until agreement was reached)


I settled for 35% discount with one
55% discount with one
75% discount with one




I received letters from 2 of the companies after payments were received stating that the debts would be registered as partially settled with the CRA and I would not be pursued for the remainder of the Debt.


One of the companies sent me a letter stating It was a full and final settlement and the balance would be returned to £0.00 and marked as partially settled with the CRA


I went to apply for a mortgage with these debts in summer last year and I was advised to settle them and then told even after settled it would be mostly 1 and a half to 2 years before I could be considered for a mortgage


Now I didn't tell the places I applied that 1 of the debts is passed 6 years from date of default and has gone from my credit file.


The remaining 2 pass 6 years from date of default on January 10th and February 20th next year and will be removed from my credit file.


I will be reapplying for a mortgage in the summer and I was wondering if anyone could tell me how strong my position is now with a £18,000 deposit and no debts at all on my credit file (once feb 20th passes)


Will the fact that I had these debts hamper my application still like it did last summer or will the fact that I have settled them (partial settlement x 2 and full and final x 1) and have letters to prove so and a good deposit mean I have a chance of being accepted


Any advice is greatly appreciated


Many thanks

Gordon_Hose

Once they've dropped off it'll be like they never existed. So provided you have managed your credit well since the defaults were applied you'll stand a good chance.

Mortgages aren't all about the credit file though. They take into account affordability etc.