She has a squeaky clean credit history however I do not from 2016 through to early 2020

That is hard to say see If you can’t settle the debt in full, then settling it partially and sooner may be better than waiting and settling it later in full.

Obviously I have no idea what the mortgage market will be like in a year time. A year ago, it was VERY difficult.

I have decided not to settle the default account after speaking to a broker today. As you rightly said, it wont make any material difference until probably around a years time.

We have a fact-finding meeting middle of December to make sure everything is covered in preparation for a DIP application first week in Jan.

In my case, all my adverse entries are around the same time so its either waiting another 3yrs when everything is clear, or I go ahead with this high interest one.

In my case, all my adverse entries are around the same time so its either waiting another 3yrs when everything is clear, or I go ahead with this high interest one.

What is broker said is that we aim for the shortest possible fixed term so that in 2 to 3 years time, we would be able to switch with a much better credit history

Surely another option is to settle that the default account now and wait a year. At which point all your defaults are over 3 years old AND have been settled for more than a year.

but settling the credit card will reduce the amount of deposit I have, loans in Needham especially when considering that we may end up with 15% for a reduced interest in January.

We ran through my credit file and other bits and he said I will pass the criteria for 2 or 3 lenders that they work with from the first week of January when all defaults are over 3 years with one unsettled default allowed

My understanding is that I am still going to be limited with options even if I wait till next year, plus we’ve massively outgrown where we currently live. So it’s either I pay more in rent to move elsewhere or pay more in interest rate.

broker said is that we aim for the shortest possible fixed term so that in 2 to 3 years time, we would be able to switch with a much better credit history That is what they always say.

But find out what the lenders variable rate is when the fix comes to an end…. Because there is no guarantee that you will be able to switch at the end. It isn’t just your credit record, it’s what has happened to house prices (that affects your equity, it doesn’t always go up) and the mortgage market which is out of your control.

If the variable rate is tied to base rate, at least they can’t artificially jack it up. Some bad credit lenders increased variable mortgage rates in 2008-10 at the same time as normal lenders were cutting their rates.

My fiance and I will likely look to buy a property together at the end of 2022. We have a great joint income and will be in a position where if we needed to, we could put down at least a 25% deposit without stretching ourselves at that point. I recorded two defaults one in one was on a personal loan and significantly large at the point of default at ?24k and the was for a credit card for ?9k. I also went through a period in 2016-2019 of taking out numerous payday loans (probably 50 in that time). I have settled all of my outstanding debts repaying everything in full, with the . The . Following advice from this website, I applied for and received resonable compensation from most of the PD lenders in 2020 apart from ones that went into administration. My defaults will be 5 and 4 years old by the time we are looking to buy our property, and there will be no PDL history for at least 2 years as well. Given we are still a fairly long time away from applying for a mortgage, assuming there are no further changes in our situation, what would make the most sense from a mortgage application perspective? Would a broker be the best port of call instead of direct applications? What are the chances that my negative history is not an issue for high-street lenders?