Adverse credit mortgage question

robboa

So just a question for anyone who knows or anyone has been in my situation.

Potentially looking to apply for a mortgage in a years time.

By this point i will have 3 defaults that are 4.5 years old

As it stands they are
£3900
£50
£0 (settled)

Now ignore the fact they haven't paid yet as i will pay them i'm just waiting for them to be sold to debt collectors or become statue barred whichever comes first.

Would it be better to have the defaults paid or would it not make much difference seeing as the accounts have been defaulted anyway>?

ACG

You are waiting for a £50 default to be sold to a debt collector?

With 3 defaults that old, there is a possibility that you could get high street rates. The sooner they are satisfied the better chance you will have of getting a normal mortgage (but there is no guarantee). If you satisfy them a month before you apply for a mortgage, it is going to look like you have satisfied it just to get a mortgage. In effect it will look like you are satisfying them for your own benefit, not because it is the right thing to do.

The £3,900 default is a different kettle of fish as that is a large enough amount to give you a bigger deposit. Looking at that with a mortgage broker hat on, I would say if you had no hope of high street rates, I would hold back the £3,900 and put it towards the deposit.

You have a bit of a toss up in that do you clear the default to improve your chances of high street rates or do you keep the £3,900 to have a smaller mortgage with a more specialist lender.

Difficult to answer that, you probably have to weigh it up.

robboa

Not the fifty pound one but the defaults are both with the same bank so haven't done anything with either atm.

But thank you for your post

foxy-stoat

Wait for 18 months then apply for a mortgage, if your waiting to see if you can avoid paying the £3900 back or not.