Skip to content

Avatar
Log In
Please consider registering
Guest
Forum Scope


Match



Forum Options



Min search length: 3 characters / Max search length: 84 characters
Register Lost password?
sp_TopicIcon
Getting a mortgage with large outstanding debt that defaulted more than 10yrs ago
Avatar
sarahe
2 Posts
(Offline)
1
04/02/2022 - 9:47 pm

So myself & my husband have £56,000 of o/s debt on low monthly repayment plans which all defaulted more than 10yrs ago.
Our finances are much improved with a decent income but we cannot afford to pay the debt off, therefore it has been fine just paying a minimums amount for many years. We’d really like to get a mortgage and have been generously been gifted 50% of the value of the property from family if we go ahead (they are unaware of the debt). We can only get a tiny mortgage when we’ve looked into it due to our debt.
My question is, if we offer & are accepted by the creditors to pay a lower amount to pay off the debts will this go against our credit report? Currently our credit rating is really good as these are such old debts they don’t show & I understand the default disappears after 6yrs whether paid off or not. But if we managed to get the creditors to accept & pay off the debts will it be worth it to then get a mortgage or will our credit file then go down a lot?

Avatar
157 Posts
(Offline)
2
04/02/2022 - 9:57 pm

Hi there,

Settling debts will only ever improve your position, but in this scenario I’d speak to a specialist broker as there should be options.

Best of luck

Avatar
sarahe
2 Posts
(Offline)
3
05/02/2022 - 6:38 pm

I’ve spoken to a number brokers & no one seems to be able to confirm anything and are all a bit vague, so a specialist broker sounds like an option, can anyone recommend one they’ve used or is Simply Adverse a specialist broker? Thanks

Avatar
157 Posts
(Offline)
4
05/02/2022 - 6:58 pm

We are certainly a specialist, but there are others.

We are open until 8pm tonight and tomorrow if you did want to talk through…

Forum Timezone: Europe/London
All RSSShow Stats
Top Posters:
jrlsmc890: 12
beepboopbeep: 12
Allison79mw: 11
walt46: 11
ashley_987: 10
Redpanther89: 9
nursek: 8
M_wannabe: 6
RussH: 6
ERG005: 6
Newest Members:
testls
paulgough
ThomasMoubs
Davidjohn753951
Tim453
joric
RelyServices5
RobertHep
ncubemp
Help2022
Forum Stats:
Groups: 1
Forums: 12
Topics: 156
Posts: 556

 

Member Stats:
Guest Posters: 0
Members: 411
Moderators: 5
Admins: 3
Most Users Ever Online: 207
Currently Online:
Guest(s) 2
Currently Browsing this Page:
1 Guest(s)

Read Our Latest Reviews

4.94 Stars - Based on 2377 User Reviews

Your home may be repossessed if you do not keep up repayments on your mortgage.