Mortgage Refusal - default removal

Long story short, we have been paying a DMP for several years now and we only have 2 creditors left on this (Started with 9). We have been looking at getting a mortgage and the 1 thing that is stopping us is that one of the remaining creditors has us down as 'defaulted' as they have not been receiving the minimum monthly payment through the DMP - this goes back 3+ years. (& yes the interest rate on the mortgage we are seeking will be a lot higher for now).

Basically, I phoned the creditor and they have point blank refused to help us or even look at removing this default even though they have been receiving a payment from us every month. If we pay this off in full after our house sells, what is the likelihood of us then receiving a mortgage? Would it be years down the line? Can we negotiate with them and ask them to take it off if we pay the full outstanding balance?

Thanks in advance for your help.


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