Default settlement - what looks better?

Legacy_user

I have a default from around 3 years ago on a debt that I am paying off each month. They have recently written to me with a partial settlement offer.

I am trying to pay things off and repair my file all in an attempt to get a mortgage in the near future, so my question is, in the eyes of a lender, will a debt closed quicker with Partial Settlement on my file look bad? Or shall I continue with the payments I'm making to get a full settlement, but will take longer? I don't know what to do for the best with this one.

kingstreet

Once it's over three years old, the lenders who accept such cases won't care if it's satisfied, part-satisfied or unsatisfied.

All they will be interested in is a clean unblemished last three years.

System

Thank you very much. Out of interest, what sort of lenders would they be? High street lenders? Or just sub prime..

kingstreet

You will have options in both sectors.

Thinking about it, one high street lender would prefer a settled/part-settled default more than three years old, so you will increase your potential lender pool.

TBH it depends on the rest of the application as well, so start talking to a decent broker sooner rather than later.

System

Thank you That's made me feel a lot more positive!

jonnyjonjonjunior

Anecdotally, my experience is that for mortgages, TSB, NatWest and Halifax have all been prepared to offer me mortgages (90% LTV) and I've got an old default (5.5 years - £260). I know this having undertaken soft searches with them, before going to a broker. I'm very lucky to be in a good job and to have built a strong credit history otherwise.

If I were you I'd either take a look at the banks' various eligiblity checkers and just be really up front about your old default. I'm no economist, but I think post Brexit, banks are prepared to lend more, to stop the housing market slowing down too much.

Good luck.

JJJJJ