Hello DontDoDebt.

I hope all goes well with your trust deed becoming protected today.

If you're to be named on the mortgage, as a joint party to it, being in a trust deed is probably going to make it harder to get a decent mortgage on decent terms.

If you aren't named as a joint party there should be no issue (unless a mortgage lender sees a financial link between you and your wife that affects their decision). However, in these circumstances your income would not usually count towards the equation of working out how much a lender is prepared to lend.

As always, on this type of question you may wish to seek the opinion of a mortgage broker to be sure of your position.

My personal opinion is that mortgage lending to anyone that has experienced any kind of recent credit issues is unlikely to improve anytime soon. There is more demand for mortgages than there is supply of mortgages from lenders. They can therefore choose to be very picky about who they lend to and groups that they perceive to be risky may not appear to be an attractive business prospect.

The other thing to remember is that many of the mortgage lenders that were lending a few years ago to people with significant credit problems were part of the wider scenario that led to the credit crunch. New mortgage lenders were set up, often by investment banks. They'd sell mortgages to the public, package them up as an investment opportunity, then sell the mortgages (and their risk) to investors (who often didn't appreciate the risks to which they were exposed). We know how this ended up.

Maybe it's best to plan around things staying as they are for a while. If conditions do improve then all the better.