Would cancelling my DRO and paying off debts increase my credit score any time soon?

beepboopbeep

Hello,
Long time lurker here. I've read some great advice over the years, thank you all, hoping I can get some advice to a specific question if poss please...
My husband and I are half way through a debt relief order but my grandfather has decided to sell his house and is considering giving us £25K for a deposit on a house. If he decides to, this money would mean we'd have our DRO's cancelled and would be able to pay off our debts in full. This would leave us with around £15K left to use for a deposit which is still doable.

However my question is this; if we did cancel the DRO's (had them revoked) and paid off our debts in full - would our credit rating increase that much to even be eligible for a mortgage any time soon anyway? And how long would this likely take? (Some context: We have a CCJ each and several defaults over a few years as we were previously on a debt management plan for five years before going on the DRO and credit rating is currently at "very poor" on Experian). 

The other option is of course just waiting for the DRO to finish in 6 months time and then waiting for our credit scores to increase over a few years before trying to get a mortgage then. I guess I'm just trying to figure out the quickest and safest way to get a mortgage.
Thank you for any help or advice 

sourcrates

You cannot just cancel a DRO, as you say, it has to be revoked.

Do you have one each, as you cannot have a joint one, you mention a CCJ each ???

I would think long and hard before taking this course of action, your credit rating is something you build over time by good financial mangement, your credit score is nothing but a marketing tool used by the CRA`s to sell you stuff, hence why most CRA`s are brokers.

If the DRO`s were to be revoked, not only would the full balance of each debt become payable, but all the interest and charges wiped under the DRO would be reinstated, including interest accrued during the time the DRO was active.

Whatever happens, the DRO will be on your credit files for 6 years so nothing will improve until that has gone.

Ask him to keep his money till your DRO has ended then have the full benefit of the money, anything else is silly to be honest.

bradders1983

Also, the three digit score is irrelevant. 

beepboopbeep

sourcrates said:

Ask him to keep his money till your DRO has ended then have the full benefit of the money, anything else is silly to be honest.

Thank you for your reply. I was thinking this may be the case, and it may be a waste of his money paying off the debts in full if it wouldn't even really help our credit rating anyway. My (now) husband and I have separate DRO's and separate CCJ's.
The other option we were considering is the possibility and criteria of applying for a guarantor mortgage as my Dad who owns his own house is willing to be the guarantor. But I have posted this query in another thread 
Thanks again 

MovingForwards

https://forums.moneysavingexpert.com/discussion/6193012/guarantor-mortgage-with-very-bad-credit#latest

Covered it on your other thread.