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Full and final settlement and mortgages

Hi, first post here, after some advice.

Im wondering what the implications are for making a full and final settlement offer to Lowells regarding getting a mortgage.

I recently received debt collection letters from Lowells regarding a BT broadband account I had in 2015 (3 and a half years ago) at an address I didn't stay at long while I had some mental health problems.

I sent Lowells a "prove it" letter as I wasn't sure this debt was accurate but they've proven it and I recognise this debt as mine, even though the majority of it is charges for breaking the contract.
I'm wanting to stop them chasing me and have read about making a full and final settlement agreement as realistically I'd be happy to pay half (although id prefer to pay much less) However I'm also looking into buying my council flat on a right to buy and want to know how a full and final settlement will affect my likelihood of getting a mortgage.

I'd appreciate your advice. Thanks in advance

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