Mortgage & DMP?

Floss

I have £21k of defaulted debts, £6k "not being collected" and the other £15k on hold pending CCA replies. Defaults will fall off in March 2029.

My home is shared ownership with my 50% mortgage free and rent & service charge on the other half going up by APR every year. I'm 60, still working in the NHS and am debating whether to buy the other half of my home.

What is the likelihood of me getting a decent rate on a £50k mortgage over 10-15 years with my defaults?

ManyWays

Floss said:

 £6k "not being collected" and the other £15k on hold pending CCA replies. Defaults will fall off in March 2029.

Does this mean the lender has agreed that they won't ask you to pay, when you requested they write off the debts?

I guess you have no chance of a mortgage at a decent rate with those defaults on your credit record and if you are hoping the defaults will be removed if the CCA agreement cant be produced, that is also very unlikely.

fatbelly

Are you aiming to buy out the other 50% share? What's the thinking behind that?

Or is the 50k mortgage with something else in mind.

I couldn't really follow what your plans were.

Brie

Do any of the debts relate directly to the property?  

If there are credit cards you might be very limited to the banks that will accept you for a mortgage so you may need to go through a mortgage adviser to get anything at all.  

Ultimately my guess is that that applying for any mortgage will not succeed until your finances are in a stable position.  That means some written off and others being steadily paid down for a couple of years before the application.  And then knowing that you will be able to afford to pay the £50k+ mortgage over a shorter period while heading in to retirement.

Floss

ManyWays said:

Does this mean the lender has agreed that they won't ask you to pay, when you requested they write off the debts?

I guess you have no chance of a mortgage at a decent rate with those defaults on your credit record and if you are hoping the defaults will be removed if the CCA agreement cant be produced, that is also very unlikely.

Yes, the lender has stated they won't write off but will not collect.

No, I'm not expecting the defaults to be removed.

Floss

fatbelly said:

Are you aiming to buy out the other 50% share? What's the thinking behind that?

Or is the 50k mortgage with something else in mind.

I couldn't really follow what your plans were.

The property value is £100k so the £50k is for the other 50%. The thinking is to have no rent to pay once the mortgage is cleared (partly by pension lump sum when I retire), as it is currently £410 + £38 service charge and increases every year.

Floss

Brie said:

Do any of the debts relate directly to the property?  

If there are credit cards you might be very limited to the banks that will accept you for a mortgage so you may need to go through a mortgage adviser to get anything at all.  

Ultimately my guess is that that applying for any mortgage will not succeed until your finances are in a stable position.  That means some written off and others being steadily paid down for a couple of years before the application.  And then knowing that you will be able to afford to pay the £50k+ mortgage over a shorter period while heading in to retirement.

No, there are no debts directly related to my home.

The debts I'm waiting for CCAs on are Newday, MBNA & Virgin; NatWest is the not-being-collected one.