I am in the process of a mortgage application with my OH. Mortgage advisor has been going through our statements and asked about a monthly payment I am making. It’s in relation to a credit card debt from a number of years ago. The debt has long since dropped off my credit file and I have been making regular payments for 5 years.
I was looking into proposing a final settlement to the dca in order to get it gone so to speak. I have spent the last few years repairing my credit file, nothing adverse on there now, just current account, credit card with low balance and a next account, again with low balance. Not been in overdraft for months, no late payments etc and everything looks good.
When I spoke with the solicitors acting for the dca they advised that if a settlement was accepted it would show on my credit file as ccj partially settled until the 6 year period is up which would be next spring and could make obtaining credit difficult. However, on checking my files with all 3 agencies as well as the ccj register at Trust Online there are no ccjs registered in my name anywhere. I am concerned if I settle this now that the ccj will now appear on my file and jeopardise the mortgage application.
Anyone have any words of wisdom on this? Really not sure what to do as mortgage advisor asking to know balance yet to be paid and whether it will be settled on completion (I’m assuming this is to inform the lender before they make their decision).