Taking settled debts off credit report

[Rad2016]

Hi guys.. Am writing this feeling so sick and in tears. So we are about to buy our first home and were in process of going to sign paperwork today on a plot we like and noticed from the phone conversation on getting a decision in principle only to notice that a debt settled is affecting us getting a loan. I have spent my whole life trying to pay my bills on time and the ones I couldn't I made arrangements. Now I have a good job and ready to get on the property ladder but this has just spoiled our day and I am in tears.

Is it a debt that you paid on time, or one which you were late paying and then made an arrangement to repay over a longer period?
If the latter then I think it stays on file for 6 years.

If your current lender will now not agree a mortgage in principle, then talk to your mortgage broker to see if there are any other lenders who will lend on the basis of that old settled debt being on file.

It was a late payment that I made arrangements to clear. I had a stroke in 2011 and could not work for a long time. I am hoping to speak to vanquis tomorrow if there's anything they can

If you were late paying a debt, for whatever reason, it will stay on your credit file for 6 years after the date of settlement.

Whether or not you can currently get a mortgage worth having (some adverse credit products are very expensive, so could be unaffordable and/or a waste of money, while others are a small percentage above normal rates, so OK) depends on exactly how many defaults you have and how long ago they were settled.

Like a PP says, best thing to do would be to talk to a broker who is knowledgable in the sub prime market to see if anything is available to you. If you have a good deposit, good affordability and the defaults were more than 2/3 years ago and not numerous and/or large amounts, you might find a decent product available to you. If not, home ownership might not be available to you in the short term unfortunately.

As always Moneysavingexpert is the place to go for detailed help and guidance.