Hi jyoungy83 and welcome.

Congratulations on completing your trust deed.

Your balances should have been marked to zero soon after your discharge.

You'll need to contact any lenders that haven't done this individually to request that they update your records now.

Hi,thanks for the quick reply. What's the best way to word a letter to the lenders and is it best I ask for a letter from them confirming my balances are zero or will they contact Experian etc direct. Should I send them a copy of my discharge letter. I did not make all my payments to my trust deed due to me being unemployed for a period. I was still discharged after 3 years. Does that effect my debts being cleared as I did not make all 36 payments.

Hi jyoungy83.

A copy of your discharge letter may well help to prove to them that you're no longer in a trust deed.

After verifying that, you'll simply be asking them to mark the balance on your account to zero (because you no longer owe the money) and to promptly report this fact to the credit reference agencies.

Whether you made all 36 payments isn't relevant. The only relevant thing is that your trustee discharged you from your trust deed and from your debts.

Hi jyoung83,

Well done on the completion of your Trust Deed.

It's not a problem that you didn't complete all of your monthly payments. Your Trustee still deemed that you had co-operated and met your obligations and therefore provided you with your discharge.

Have you received your Form 5 which is the discharge certificate? If you have I would send a copy of this to each one of the creditors that you are having difficulty with and request that they update your credit file to reflect the current position i.e. your discharged and no longer responsible or liable for the balance and for it to be set to zero.

This issue is a hot topic on the forum at the moment with a lot of good advice from other people who have had to chase up their creditors to update their credit file. If you have a search and a read back on previous posts you will find useful information.

It does take a little bit of time and hard work on your behalf but if you are wanting to repair your credit rating as quickly as you can it will be time and effort well spent.

Let us know how you get on.

I really appreciate your replies,been a great help. I'm going to sit down tonight and get a letter types up and get it sent off to the lenders still showing a balance. I will let you know how I get on.

Just one last question,I am currently saving towards hopefully buying a house with my partner. As I've been in a trust deed, what are the chances of being accepted for a mortgage. We will be looking to buy in about a years time. The only credit I have is a mobile phone which is paid every month.

We cannot really answer that question jyoungy83. There are so many factors involved in being able to get a mortgage of which the existence of a previous trust deed is just one.

It would be fair to say that a relatively recent trust deed will make it harder to find a lender and that it might affect the terms of any lending offer made to you.

The following article might contain some information you find useful:

https://www.trust-deed.co.uk/repair-your-credit-rating.html

It would be interesting to see if anyone on the forum has had any success in obtaining a mortgage while in a trust deed or after they have been discharged.

As you say, there are a number of factors involved, but it may give even a wee guide to criteria. I probably look too logical at these things as i think a couple in trust deeds paying £650 per month in contributions plus rent and then finishing the Trust Deeds would have £650 extra at the end of the month and would, financially be a better risk.

Mark

Can anyone tell me if there is an Act that I can mention in my letter to the lenders to state they must update my account. Want them to read my letter and think ok we better update this.

I'm trying to keep the letter simple but powerful,if that makes sense.

I don't know of any relevant Act jyoungy83, just a general principle applied by the Information Commissioner that the information held on you should be up-to-date and reflect reality.

I've found (with RBS and Barclays) that you don't need to be too high-handed or quote law at them, really - just ask them to make the update. Some banks use third-parties and that can cause delays in the process.

Would also be interested if other forum members have obtained a mortgage after a trust deed. It's not really an option for us at the moment due to hefty childcare fees for two children when I go back to work next week, but it's something we definitely want to look into for after the eldest starts school.

Hi,
Just thought I'd respond to your question regarding mortgages.
My husband and I have just tried to gain a mortgage, I was discharged last October. My credit file is up to date, I have had no defaults on my current mortgage and we have a 25% deposit. We had a whole of market broker who emailed 22 companies and none of them would take us on. They all said we would have to wait until the trust deed drops off my file, which is anothe 2 1/2 years. I have heard of people on this forum gaining a mortgage before it is off their file so it can be done just not for us. Luckily my mum is going to get a buy to let mortgage so we can still get the house and then try again in 3 years time.
Sorry this wasn't more positive.

Hi falco28,

It can be difficult and time consuming trying to rebuild a credit rating following a successful completion of a Trust Deed.

I think it really just comes down to the length of time you have been discharged before lenders will consider you for any kind of future borrowings be it a mortgage or unsecured finance.

If someone happens to have 50% to 60% for a deposit this could work in their favour but it's hard to achieve that kind of deposit unless it's a purchase from the local authority.

I even encountered problems when trying to purchase a property and I have a good credit rating. Some lenders wouldn't lend anywhere near what I needed to purchase my house. HSBC in particular who my partner has been employed by for years wouldn't entertain us which was strange and we had a suitable sized deposit.