Welcome to the trust deed forum TimeLord (another thing I never thought I'd write!).

TimeLord skills might be handy to know what mortgage lending criteria will be in the future when your trust deed ends. It's tight right now for everyone, and especially where there is some negative credit history. Hopefully that will relax over time.

What we can say is that your trust deed will no longer appear on your credit record in six years from the start of the process. There are also lots of things you can do to improve your credit rating after the trust deed ends (see our "life after a trust deed" page on the main site menu).

Once the trust deed ends some relentless saving may be required to put the biggest deposit possible together. That is now massively important for anyone, trust deed or not, to get on the housing ladder.

Big deposit and use a whole of market broker. Sub prime lending was massive a few years ago and will over time come back.

Paul

Hello plasticdaft.

I'm not sure it will, and it's probably best to work on the assumption that it will not. The way sub-prime lending was handled a few years ago was one of the biggest factors that almost destroyed the banking system.

Some relaxation in lending criteria compared to how things are right now perhaps... but I doubt it will ever again be the same as it was five years ago.

But then again, it is constantly surprising how often past mistakes are repeated. Once house prices are steadily on the rise again then there are going to be lenders out there thinking here is a niche for us to make some money.

However with fewer competitors willing to take on as much risk, naturally they will charge exorbitant interest rates.

Pricing for perceived risk (and supply versus demand holding rates high) does seem the likely direction Kevin.

Five years ago someone could take out a 95% loan-to-value mortgage while in a trust deed, self-declare their income, borrow a multiple of ten times this income, and all for a premium of about 1% to 1.5% or so on the rates on offer for more mainstream mortgage products.

I genuinely don't think that's ever coming back.

You are probably right - definitely in the short/medium term - but never say never!

Thanks all for the advice, i took a lot of advice, time and thought before taking the decision of a trust deed for the long term benefit of my family and it does certainly seem that there is light at the end of the tunnel. Again, thanks

There is certainly light at the end of the tunnel TimeLord.

I'm glad we could help.

If there is a market for it someone will take the risk,perhaps not in quite a way as a few years back but if theres money to be made they will start to ease sub prime lending back in.

Just my prediction for the near future.

Paul

Hi TimeLord,

There is definitely light at the end of the tunnel. I finished my TD in September 2009 and at the beginning of 2011 used an IFA to get a mortgage, I had a 25% deposite and despite being pre approved my mortgage got turned down (my IFA knew nothing of TD's - as seems to be common in my area - I had to give him all the info I knew). Then in September 2011 I decided to try to get a mortgage via my own bank and got approved straight away with a 25% deposit. My TD and defaults are still showing on my credit report, I think the reason my bank approved is mainly that they have record of my finances over last 7 years and I have managed them well since entering the TD. Hope this helps.

Nice and positive post blacklily. There is life after a trust deed!

Paul

Absolutely plasticdaft, hopefully never making the same financial mistakes again! Including avoiding overpriced PPI at all costs!