DMP & Future Mortgage

I have been trying to research about this but struggling to find info so hope someone might be able to held shed some light on this please. I have been paying off a debt that has gone to Cabot. They have been offering me settlement figures which I would like to try and do with some money I have got from a PPI claim. The debt is 10 years old so isn't showing on my credit file, if I take a settlement order will this flag back up on my file? Just to add to this my partner and I are keen to try and get a mortgage and was wondering if when we do manage to apply for one will the settlement show up there even if it isn't on my file? Thanks

Replies

  • RASRAS Forumite
    29.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    I asked the same question with regard to someone else's ancient debt yesterday. Once the debt has left your credit file on the grounds of age, it cannot be re-instated if you settle it. 

    Apparently if it did reappear incorrectly, it would be grounds for complaint..
    The person who has not made a mistake, has made nothing
  • Suseka97Suseka97 Forumite
    1.5K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
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    No, once a debt has dropped from your credit file it's gone - irrespective of whether you have cleared the balance owing or not. That's why people are advised to push for a Default, because that starts the 6 year countdown and give a debtor a clear end date to when they can expect the accounts to disappear from their credit reports.
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