Mortgage with part settle defaulted account

freddie2020

Hi,

I have a default with Natwest.

It is old enough not to show on credit report, and being paid off under a DMP

I have had an offer to part settle it.
If I part settle it, and then try to get a Mortgage with the same bank.

Surely they would know this, and a part settlement go against an application?


Thanks

[Deleted User]

Yes, but it would be better than continuing to pay it off at a slow rate.

longjohnjohnson

freddie2020 said:

Hi,

I have a default with Natwest.

It is old enough not to show on credit report, and being paid off under a DMP

I have had an offer to part settle it.
If I part settle it, and then try to get a Mortgage with the same bank.

Surely they would know this, and a part settlement go against an application?


Thanks

The default itself is going to the bigger problem, that they'll almost certainly still have on file.

Perhaps apply with someone  other than NatWest Group banks?

K_S

@freddie2020 Generally speaking, the approach I use with clients who have a historic default (if they tell me about it!) with a particular lender is to avoid that lender if possible.

So unless there's a particular reason you need NatWest (eg: need 100% of variable income to be considered or 5x borrowing at low LTV), perhaps best to avoid as they'll still have internal records and it may not come up at the DIP stage but get picked up later on during manual underwriting or audit.

Having said that, Halifax (Lloyds Banking Group) appears to have no issue with accepting clients who've had an old default with them or a bank in their group.

MovingForwards

NW have a long memory, pay it in full or look to another banking group.

freddie2020

Thanks for the advise all - much appreciated.

I actually have had debts with different banks, was using Natwest as an example TBH - do actually have debts with them.

I can afford to pay them off all in full, and have been offered part settlements from some of the collectors. 

Think whet it comes time to apply, need to use a specialist to try and apply for ones with best chance - like Lloyds as suggested.

Cheers again