Written Off Debt ?

PFos7

Hello, I have a debt which is a default on my account back in Nov 17. I have paid some off of that debt and got the remaining figure to £5k. Since then the lender has written to me stating that the debt has been written off and they will no longer chase me for the money but this will stay as a default on my account for 6 years. I also had some other debts but I have paid those back and they are settled on the account now. I am now in a position to look for a mortgage, I am on a good wage and I have around a 10% deposit. What are my chances of being accepted for a mortgage? Do I still need to pay off the debt even know they have written to me stating it has been written off and they will not chase me for the money? Does this affect my mortgage chances ? 

Can the lender change their mind about writing the debt off and still chase me for it even after the letter they have provided? Any guidance on this will much appreciated as I don’t know what to do? 

Many Thanks
 

[Deleted User]

What is the status of the account on your credit files?

If it's settled, then there would be little point in trying to make any further payments.

PFos7

The status is still default, they have stated that they have written it off but they will keep it as defaulted on my account for the 6 years. So I don’t understand what position I’m in ? 

Moneyravingexpert

PFos7 said:

The status is still default, they have stated that they have written it off but they will keep it as defaulted on my account for the 6 years. So I don’t understand what position I’m in ? 

PFos7 said:

The status is still default, they have stated that they have written it off but they will keep it as defaulted on my account for the 6 years. So I don’t understand what position I’m in ? 

Hello. I’ve been here before. So I had a default and a load of it had been written off but irrelevant of the status it showed as a default. It’s a tough one re mortgage as I managed to get credit absolutely fine after a while- but you’d need to be upfront about it and ask the lender their view and what can be taken into consideration. The system might reject it but am underwriter may look into it. Nowadays I’d imagine them to be a bit tighter. Mine came up on a check when I was applying for a new job- but explained it to them and they were fine. As this is against a mortgage it may be different. How long has it been there for? 

Fletcher86

PFos7 said:

The status is still default, they have stated that they have written it off but they will keep it as defaulted on my account for the 6 years. So I don’t understand what position I’m in ? 

Is it marked as a settled default? If the debt has been written off then it will most likely be marked as settled - meaning it has been closed. If it’s not marked as settled - when did the lender write to you? If it was recent they might not have updated your file yet.

A settled default will be viewed more favourably than an unsettled one by any lender, best bet is to speak to a broker and be upfront about the default so they can find you a mortgage from a company who lends under these circumstances .

sourcrates

You cannot re-pay a written off debt, as it no longer exists.

The default will remain until 2023, then disapear for good.

A decent broker, as advised above, is your best shot till then.