Partially Settled Debts & Mortgages..

ImGettingThere

Hey everyone,

OK so - I have around £9000 in debt. I've been slowly chipping away at it but obviously it is a roadblock to getting a mortgage which is well past due.

I'm about to get around £5-6000 which of course, will make a HUGE difference to my situation.

Now, I've been considering offering a reduced final settlement fee which will flag up on my credit history as partially settled.

I'm self employed too so, is there any way in hell you could see a mortgage lender being able to help a self employed guy with partially settled debts - especially looking at a 5% deposit if possible..

Just want to know if it's worth pursuing of if I should keep cracking on and get the rest down!!

Thanks!

Willing2Learn

Hi,

Are your debts marked as defaults or have you made an arrangement to pay them off (marked AP on your file)?

ImGettingThere

Sadly, defaults.

Starting the business gave me an erratic income and my DMP ended after 12 months and then it all just got messy. For 5 months, nothing was an issue - then it all went down hill for 3 months and after missing direct debits the companies stopped them and asked me to do a income/outcome sheet which, currently - is almost impossible as it varies SO much.

Willing2Learn

Defaults are better than APs as they are removed from your file earlier (six years from the date of default as opposed to six years from account settlement). When do your defaults drop off your file?

It is still possible to get a mortgage with defaults on your file. You need a specialist mortgage broker.

sourcrates

Hi,


Its the defaults that have caused the damage, how you settle the debts now is largely irrelevant, i would suggest you try and obtain the best deal that you can, then put it behind you.

neofuture

don't bother settling your defaults, they are on your file regardless and settled or not they are treated the same... 12 months ago almost to the day, moved into my home with a mortgage with precise, my interest rate Is through the roof, and I had to find 15% deposit after being made homeless (that was a difficult 15 months with 5 kids, fortunately while i stayed back here homeless and able to go to work (living in a caravan) my wife went to the mother in laws, I was paying my defaults until my mortgage advisor said there was no point, once its default, its on your file for 6 years and mortgage companies don't care if you settled or not they treat you as if you didn't, so save your case for your house deposit, if you have !!!!! credit like me, 15% you'll need but a lender will lend to you, but hey least you have 15% value in your home from day one