partially satisfied debt affect mortgage application?

mawk86

Hello, 
My partner and I are applying for our first mortgage in June, when his CCJ will be fully satisfied for over 6 months (as advised by our mortgage advisor). 
We have just received an unexpected letter from a debt collection agency saying that he owes £264 from an old loan account, and they offered an early settlement deal of £212 which we accepted. When the agent was talking this through he said that the debt would show as partially satisfied on his credit report, I asked when this would show and he said that the debt should already be on his credit file as it is from 2016 - however we can't see it on his Experian report?!
If we take the partially satisfied option, is this likely to affect our mortgage application? 

Thanks 

2021BJ

mawk86 said:

Hello, 
My partner and I are applying for our first mortgage in June, when his CCJ will be fully satisfied for over 6 months (as advised by our mortgage advisor). 
We have just received an unexpected letter from a debt collection agency saying that he owes £264 from an old loan account, and they offered an early settlement deal of £212 which we accepted. When the agent was talking this through he said that the debt would show as partially satisfied on his credit report, I asked when this would show and he said that the debt should already be on his credit file as it is from 2016 - however we can't see it on his Experian report?!
If we take the partially satisfied option, is this likely to affect our mortgage application? 

Thanks 

 Nobody is going to know the answer to that other than the lender and/or the broker.

For the sake of £50 why don't you just settle it in full?

DCFC79

Is the advisor from a bank ?
If not consider a independant broker, they will search all of the market plus they can advise you if it will affect the application.

mawk86

DCFC79 said:

Is the advisor from a bank ?
If not consider a independant broker, they will search all of the market plus they can advise you if it will affect the application.

Yes we used an independent advisor, she contacted lenders about the CCJ and was advised that after 6 months clear it would not prohibit our application, so you’re right she is likely to be able to answer my question! 

DCFC79

mawk86 said:

DCFC79 said:

Is the advisor from a bank ?
If not consider a independant broker, they will search all of the market plus they can advise you if it will affect the application.

Yes we used an independent advisor, she contacted lenders about the CCJ and was advised that after 6 months clear it would not prohibit our application, so you’re right she is likely to be able to answer my question! 

Thats good you used an independant one.
Its all down to the lenders, some might not even give 2 hoots about it and some might not even want to lend.
If the advisor is any good she will know which if there lenders who are likely to lend.

[Deleted User]

mawk86 said:

Hello, 
My partner and I are applying for our first mortgage in June, when his CCJ will be fully satisfied for over 6 months (as advised by our mortgage advisor). 
We have just received an unexpected letter from a debt collection agency saying that he owes £264 from an old loan account, and they offered an early settlement deal of £212 which we accepted. When the agent was talking this through he said that the debt would show as partially satisfied on his credit report, I asked when this would show and he said that the debt should already be on his credit file as it is from 2016 - however we can't see it on his Experian report?!
If we take the partially satisfied option, is this likely to affect our mortgage application? 

Thanks 

You need to check all 3 CRAs not just Experian, the lender may only report to Equifax (view at ClearScore) or TransUnion (view at Credit Karma)