Unsettled defaults and mortgages

hobbnobb

It's been a while since i was on here!
Bit of background, I started a DMP with Payplan in 2011 and it is ticking along nicely. All debts passed to DCAs and I am now in the position to start offering full and final settlement offers on some of the smaller ones. I sent four offers off today so will wait and see what they say.
My now husband declared bankruptcy at the same time as i started my DMP so he is now approaching 6 years post discharge.

We are hoping to be in a position to buy our first home in the next couple of years and my question is about some of my debts. I have 4 creditors where the balance is over £1500 and I was planning on offering F&F offers
for these in a few months so that i am all clear for a mortgage application, but I read on here that as the defaults have now dropped off my credit file, whether they are settled or unsettled is irrelevant when applying for a mortgage, is this correct?
Should I use the money for settlement offers or would it be best to keep going on the DMP and use the money towards a house deposit? Not sure if that is even possible as I can't see that we would get a mortgage if I am still on a DMP but though I'd check
Thank you

fatbelly

hobbnobb wrote: »

We are hoping to be in a position to buy our first home in the next couple of years and my question is about some of my debts. I have 4 creditors where the balance is over £1500 and I was planning on offering F&F offers
for these in a few months so that i am all clear for a mortgage application, but I read on here that as the defaults have now dropped off my credit file, whether they are settled or unsettled is irrelevant when applying for a mortgage, is this correct?
Should I use the money for settlement offers or would it be best to keep going on the DMP and use the money towards a house deposit? Not sure if that is even possible as I can't see that we would get a mortgage if I am still on a DMP but though I'd check
Thank you

Whether they are fully settled or partially settled will make no difference if the whole entry has dropped off your file.

However you may still be asked to declare other debts when you make your application for a mortgage. And if they went for a court claim you might need to pay the full balance quickly

I'd do the F&Fs, personally