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, 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 payday loan single payment or installment I pay more in rent to move elsewhere or pay more in interest rate. Read more