Hello,
Just after a bit of advice.
Very brief summary - was in a debt management plan (debts accrued when I was young and irresponsible) since 2007. Debt totalled around £18,000. Paid this down to £9,000 and was in a position to offer partial settlements this month. Have agreed and paid 75% settlements to my creditors so am now free of those debts. I obviously had defaults on my account which were added in 2007,2008, 2009 and 2 in 2010 (these last 3 are currently with ombudsman as accounts actually defaulted in 2007 am waiting for decision about whether these will be dated back to 2007/2008. we have no other debt except a mortgage which has never been in arrears. All current accounts/phone etc are 'green' and up to date. we have a good joint income.
We are looking to move house and have been enquiring about a new mortgage (accepting of course we will have to go sub prime). We have 40k to put down as deposit (which will equate to about 25 -30%). The broker we have approached told us we will probably not be considered by any lender as the defaults are partially settled but we would be considered if the debts were fully satisfied.
So I was wondering whether we go into rented for a year or 18 months by which time all the defaults will have fallen off (except the 3 late ones which hopefully will have had the dates corrected - initial decision by ombudsman agreed with me, Lloyds appealed so now waiting for final decision) which would mean they would also be gone, but that's not guaranteed. (but I'm confused as only settled this month does that mean they will show on my account for 6 years from now or will the accounts completely disappear off my credit file 6 years from when default added?)
Or do we sell (we have an offer for our house), rent for 6 months use some of the deposit to make the settlements fully satisfied and hope we get a mortgage?
Does partially settled really make such a difference over fully satisfied when the debts are almost 5 years old?
Thanks if anyone can help (and if you made it this far through my muddled writing)
Just after a bit of advice.
Very brief summary - was in a debt management plan (debts accrued when I was young and irresponsible) since 2007. Debt totalled around £18,000. Paid this down to £9,000 and was in a position to offer partial settlements this month. Have agreed and paid 75% settlements to my creditors so am now free of those debts. I obviously had defaults on my account which were added in 2007,2008, 2009 and 2 in 2010 (these last 3 are currently with ombudsman as accounts actually defaulted in 2007 am waiting for decision about whether these will be dated back to 2007/2008. we have no other debt except a mortgage which has never been in arrears. All current accounts/phone etc are 'green' and up to date. we have a good joint income.
We are looking to move house and have been enquiring about a new mortgage (accepting of course we will have to go sub prime). We have 40k to put down as deposit (which will equate to about 25 -30%). The broker we have approached told us we will probably not be considered by any lender as the defaults are partially settled but we would be considered if the debts were fully satisfied.
So I was wondering whether we go into rented for a year or 18 months by which time all the defaults will have fallen off (except the 3 late ones which hopefully will have had the dates corrected - initial decision by ombudsman agreed with me, Lloyds appealed so now waiting for final decision) which would mean they would also be gone, but that's not guaranteed. (but I'm confused as only settled this month does that mean they will show on my account for 6 years from now or will the accounts completely disappear off my credit file 6 years from when default added?)
Or do we sell (we have an offer for our house), rent for 6 months use some of the deposit to make the settlements fully satisfied and hope we get a mortgage?
Does partially settled really make such a difference over fully satisfied when the debts are almost 5 years old?
Thanks if anyone can help (and if you made it this far through my muddled writing)