Remortgage - bad credit

ermb1971

Hello,
Litle bit of background - 
Mortgage currently 89,000 house worth £162,000 - I have never once defaulted/missed a payment on my mortgage held since 2016 or before
Salary 36,500 
I have a bank loan £10500 which is the only debt I have - I've recently struggled with my mental health which is no excuse to bury my head in the sand but I'm trying to fix what was done during the time I did - I defaulted on this loan my credit file says 3 months behind during this time I was in discussion with them and was paying towards the arrears, i've now made payment to completely clear the arrears and am now up to date but obviously my credit file has taken a bit of a hit which I know will take time to fix.
I'm looking to remortgage quite soon with another 30,000 on what I have currently, completly wipe the loan out and look at putting a deposit down for a house for my son, Im looking for some advice on if this would be possible with the defaults I have quite currently got on my file or if its a waste of my time looking in to it?
By paying off the loan it would free up £325 a month but I'm not sure if that would be taken in to account or if that even matters

Thank you.

ACG

If it went to a status 3, it did not get as serious as a default.

When did it go to a status 3? When did you clear the arrears. It can probably be done and there are various ways of doing it, you may find a secured loan is the cheaper option. Might be worth getting your credit report in front of a mortgage broker to look at the options.