Advice please - full and final settlements v emergency fund

cvm_2

Hi all,
I am just looking for a bit of advice, please, and will try to keep my post short. 
I am currently on DMP which is due to end in April 2022 and have 8k left to pay. I have 5 credit defaults - 3 will drop off in July 2015, after I wrote to lenders and got the default markers moved to when I began the DMP. I'm currently waiting for Virgin to let me know if they are prepared to move their marker from September 2016 back to July 2015. TSB have refused to move their marker from June 2017 and the Ombudsman have also agreed with this decision, which obviously is pretty devastating. 
I am now actually in a much better place financially and after living in a horrible flat in an unsafe area because it was affordable while paying off my debts, I am desperate to sell the flat and move to a better area (the area is getting worse and I actually feel unsafe living here).  I have been given a cash gift from my partner of 4k to offer as a full and final settlement to my creditors. 
So - as I see it, I may have a couple of different options and just don't know what to do for the best:

• Try to get a mortgage with a specialist broker now, but will probably get a high rate and will need a large deposit, if I even manage to be approved. 
• Offer the 4k as full and final settlement but ask that default markers are removed as part of the offer and so bettering chances of a mortgage. Obviously no guarantees that creditors will accept this but if they did, this would leave me in a strong position to get a mortgage. 
• Keep the 4k as emergency fund and wait another year until July 2021 when three defaults drop off, leaving me with potentially two still there. Not sure if my credit file will improve that much with two defaults still  left?

My head is telling me to offer the 4k as full and final settlement (which would leave me with no emergency fund, but would leave me £400 current DMP payment a month better off) and to then do nothing until July 2021 until the three defaults drop off - but living where I am is hell with horrendous neighbours and it is really affecting my mental health. I think I am struggling because the end is in sight and I am getting impatient to get on with my life. 
What would you do? 
Any advice gratefully received. 
Thanks for reading x 

MinuteNoodles

An emergency fund will stop any chance of repeating said mistakes. The default markers won't be removed. Lenders are required to report factually correct information about payments. If everyone could get defaults removed by paying off the debt in the future when the defaults became inconvenient it makes the whole reason for credit records pointless.

Your defaults are already nearing the age where they'll have little impact. I'm assuming there's been no further entries as a result of the DMP?

Me personally I'd keep the 4K emergency fund and look at a mortgage in the near future as you may be pleasantly surprised and if you get refused then go for 2021. 

cvm_2

MinuteNoodles said:

An emergency fund will stop any chance of repeating said mistakes. The default markers won't be removed. Lenders are required to report factually correct information about payments. If everyone could get defaults removed by paying off the debt in the future when the defaults became inconvenient it makes the whole reason for credit records pointless.

Your defaults are already nearing the age where they'll have little impact. I'm assuming there's been no further entries as a result of the DMP?

Me personally I'd keep the 4K emergency fund and look at a mortgage in the near future as you may be pleasantly surprised and if you get refused then go for 2021. 

Thank you so much for your reply. 

MinuteNoodles

No problem. Congratulations on the turn around in your finances, I know it's not easy, especially at the start where you can't see the light at the end of the tunnel.