Credit rating and mortgage

Dinosaur1

Hi, I’m hoping that someone may be able to help with my situation. I have debts totalling £44200 including interest. I have 2 defaults on loans and 2 missed payments on a credit card( 3 debts in total, 2 defaults).
I have £78000 in cash. My credit rating is 2 stars on my credit check ( 450 on equifax and bizarrely 760 on clear score)
I would like to purchase a property with my partner who has an excellent credit rating.
I earn 31500-44000 a year, partner earns 29000. I have £78000 and partner has property with £50000 approx equity.
Possible scenarios:
1. Pay off debts in full ( I have been told that it should be possible to get a mortgage with higher interest). But we would have less deposit.
2. Make part settlement offers on debts ( how would this affect my credit rating for mortgage). We would have a higher deposit.
3. Transfer mortgage of partners property and I could put x amount in once I offer to settle debts and could I use declaration of trust to protect my money.
4. Sell partners property and just get a mortgage with higher interest or buy in partners name if I can protect my money. But we then wouldn’t have income multiples.

Thanks for taking the time to read my post and if you have any better suggestions because I’m finding it difficult to source information, I would appreciate it. 

Thanks Marc

Dinosaur1

Forgot to mention
£5600 debt collection agency
£25400 Tesco’s loan
£13200 mbna credit card.
(defaults jan 2022) 
missed payments April 22.

[Deleted User]

Dinosaur1 said:

My credit rating is 2 stars on my credit check ( 450 on equifax and bizarrely 760 on clear score)

None of the pretend stars or credit ratings matter. Lenders will be looking at your credit history and circumstances.

Unsettled defaults are going to be the biggest problem. If you can settled for less, then do so - it will make little difference. Settling is the main thing. And with all that money in the bank, carrying the debts seems counter-productive, particularly as you say at least some of the debt is attracting interest.

Has you partner checked their credit files? Make sure there is nothing lurking on those, so that you can make an informed decision.  If their history is good, they need to consider if they want to be financially associated with you at this stage.

Dinosaur1

Hi thanks for you advice . The debts aren’t accruing more interest as they are in default and mbna has agreed a payment plan with no additional interest. The money I have are proceeds from a recent house sale.

I guess what I need to know if a partial settlement on debts will make any difference as apposed to paying off in full. Mortgage adviser seems to think it will I’m not sure. 

Financial link yes - I’m not sure.