DMP vs Partial settled

Rainbowboat

Hi
I currently owe £6k on a DMP that has been running for almost 5 years.

I want to remortgage but the DMP is obviously causing a few issues with credit score. I am in a position to pay £4400 to all creditors as full and final settlement to which they have all agreed

My question is whether there is much impact on my credit score when showing as partially settled as opposed to being on a DMP.
I'm hoping partially settled will actually repair a bit of my very low score, or will it make no difference at all? Am I better to just stick with the DMP if it makes no difference?

Thank you

Willing2Learn

Hi,

A prospective lender neither sees your score nor uses it. A lender will score you independently against their criteria and policies, using the data held in your credit file added to the data you submit in a credit application.

I would *think* that a lender would view a partially settled account more positively than those that had not been settled. Cannot be certain though...

sourcrates

The damage is already done by the defaults on your account, from your DMP, how you settle the debts won’t really matter at all.

Shortly it will all drop off your file anyway, after 6 years it all gets wiped.

Suseka97

When you say 'remortgage' is that because you've reached the end of a previous fixed term deal?
We managed to remortgage that way with our current provider for a good rate (we are with Nationwide and had no debts linked to them) and did so online with no bother. But if you are searching the market to remortgage, then as Sourcrates says, the damage is already done by the default markers and in which case its worth maybe just going with the same provider for a shorter term fixed deal or stick with the BMR until those markers drop off your file.