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Can I…? Do I…? Should I…? The questions that don't start with "how" or "what": credit problems, gifted deposits, surveys, cover and more.
From a qualified mortgage broker in Sleaford, Lincolnshire — helping people across England and Wales.
It's a court order to repay money you owe. Pay it in full within one month and it can be removed from the register. Otherwise it stays on your credit file for six years, even after it's paid, when it shows as "satisfied".
| Factor | Better | Harder |
|---|---|---|
| Age | 3+ years ago | Last 12 months |
| Size | A few hundred pounds | Thousands |
| Status | Satisfied | Unsatisfied |
| Number | One-off | Several, or with other issues |
Don't apply to lots of lenders and hope. One well-prepared application to the right lender beats five guesses.
| Stage | When |
|---|---|
| Discharge | Usually automatic after 12 months |
| Income payments agreement | Can last up to 3 years |
| Credit file | 6 years from the start date |
| Restrictions order (if made) | 2 to 15 years |
Struggling with debt right now? Free, confidential help is available from MoneyHelper, StepChange and Citizens Advice.
Be upfront. Lenders will find it, and an honest explanation of what happened and what's changed goes a long way.
It's registered when you've broken a credit agreement — usually after three to six months of missed payments — and the lender closes the account. Phone contracts, utilities and credit cards are the most common.
Usually, yes. It won't disappear any sooner, but it'll show as satisfied, and many lenders treat that much more favourably. Ask for written confirmation when it's settled.
Ask the lender for evidence. If it's inaccurate, raise a dispute with the credit reference agency or complain to the Financial Ombudsman Service.
Struggling with debt right now? Free, confidential help is available from MoneyHelper, StepChange and Citizens Advice.
The date the default was registered sets the six-year clock, not the date you paid it. Check that date on all three files.
If you agreed a reduced payment plan with a lender, it may show an "AP" marker. Many lenders treat it more kindly than missed payments, but it still needs explaining.
Agreed payment deferrals — like those offered during Covid — shouldn't harm your credit file, though lenders may ask about them.
Six clean months can change which lenders will look at you. Start now.
A DMP isn't a formal insolvency, so it isn't on the Insolvency Register. But each creditor may record reduced payments, arrangement markers or defaults, and those stay on your file for six years.
| Situation | Likely options |
|---|---|
| Active DMP, under 12 months | Very limited |
| Active DMP, well run for 12+ months | Some specialists, sometimes clearing the DMP with the mortgage |
| Completed DMP | More specialists; mainstream after a few years |
If debts feel overwhelming, the government's Breathing Space scheme can pause interest, charges and enforcement for 60 days while you get debt advice. There's a longer version for people in mental health crisis treatment. Ask a free debt adviser to apply for you.
Struggling with debt right now? Free, confidential help is available from MoneyHelper, StepChange and Citizens Advice.
Keep every DMP statement. A tidy record of payments made is your best evidence.
An Individual Voluntary Arrangement is a legally binding deal with your creditors, set up by an insolvency practitioner. It usually lasts five or six years, and anything left unpaid at the end is written off.
| When | |
|---|---|
| Insolvency Register | Removed around three months after it ends |
| Credit file | Six years from the start date |
| Completion certificate | Issued when you finish |
If your IVA ran for six years, it may drop off your credit file around the same time it finishes.
Many IVAs ask you to try to release equity from your home towards the end. Talk to your insolvency practitioner and to us early, as the options are limited.
The equivalent is a Protected Trust Deed, and lenders treat it in a similar way.
Struggling with debt right now? Free, confidential help is available from MoneyHelper, StepChange and Citizens Advice.
Ask for your completion certificate the moment you finish, and keep it safe. Lenders will want to see it.
To an underwriter, a payday loan can suggest money was tight. It doesn't matter if you repaid it the next day, because it's the pattern that worries them.
Lenders increasingly look at buy now, pay later use, overdraft reliance and gambling transactions on bank statements too.
Struggling with debt right now? Free, confidential help is available from MoneyHelper, StepChange and Citizens Advice.
If you're planning to buy, stop using short-term credit now. Every month without it counts.
Parents and grandparents are accepted almost everywhere. Siblings, aunts, uncles and step-parents are often fine. Friends and employers are much harder — some lenders say no.
Gifts are usually free of inheritance tax if the giver lives for seven years afterwards. Everyone also has a £3,000 annual gift exemption, plus extra exemptions for wedding gifts. Bigger gifts are worth talking through with a financial planner.
Move the money early and keep the paper trail clean. Last-minute transfers cause the most delays.
| RICS Home Survey | Best for | What you get |
|---|---|---|
| Level 1 | Newer, conventional homes in good condition | A traffic-light summary |
| Level 2 | Most standard homes | Defects, repairs needed and advice; can include a valuation |
| Level 3 | Older, larger, altered or unusual homes | A detailed survey of the structure and condition |
Swap the survey for an independent snagging inspection before completion.
Costs vary by size, value and area. We can sometimes upgrade the lender's valuation to a survey to save time.
A few hundred pounds on a survey is cheap insurance on what's probably the biggest purchase you'll make.
| Cover | Pays out | Good for |
|---|---|---|
| Decreasing life cover | A lump sum that falls with a repayment mortgage | Clearing the mortgage at the lowest cost |
| Level life cover | A fixed lump sum | Interest-only, or leaving extra for family |
| Critical illness cover | A lump sum on diagnosis of a listed illness | Paying off debt while you recover |
| Income protection | A monthly income if you can't work | Keeping every bill paid, not just the mortgage |
| Family income benefit | A monthly income to your family | Affordable cover for young families |
Protection is one of our three-and-a-bit pillars. See how we approach it.
Ask yourself: if your income stopped tomorrow, how long could the household keep paying the mortgage?
| Type | How it works | Repaid |
|---|---|---|
| Standard mortgage | Repayment or interest-only, assessed on income now and in retirement | End of term |
| Retirement interest-only (RIO) | Pay the interest only, assessed on pension income | When you die, sell or go into long-term care |
| Lifetime mortgage | No monthly payment needed; interest rolls up (55+) | When you die or go into long-term care |
The FCA's 2025–2027 mortgage roadmap includes later-life lending, so expect more choice and new products in the next couple of years.
John holds CeRER, the specialist later-life and equity release qualification. See what is equity release?
Start the conversation five years before your current deal or interest-only term ends. That gives you the most options.
Tell us straight away. The lender has to know before it releases the money, and a change can mean re-checking affordability.
Always tell us about job changes, even good ones. A surprise at completion is the worst time to find out.
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This is general information, not personal advice. Rules, rates and lender criteria change, so we'll always check your own situation before you make a decision. Your home may be repossessed if you do not keep up repayments on your mortgage.