I have been in a debt managent plan for approx 4 years now after a marriage breakup and have been paying the £400 /month with no missed payments. I have approx £9000 of debt remaining which under the plan will be cleared fully in 2 years. I have taken out a ' build your credit rating' credit card in the last year and am buying something and religiously paying it off in full each month.
On checking my credit score very recently this is at 999 which i believe is the highest it can be.
I have recently come into £5000 and I wish in a years time to take on a mortgage with my partner who has a fair bit of capital herself.
My question is do I :
1. Pay the £5000 to creditors leaving me with just one more year paying the debts and allowing me to get a mortgage.
2. Try to pay off debts in part with the creditors with the £5000 so i do not have any outstand debt. This will leave me with a year to save some additional money.
Option 2 to me looks the best option but my question is how will option 2 effect my credit rating as whilst being better off next year I do not want to jeopodise the possible mortgage application in a years time.
Again thanks for any advice.