Conflicting TD advi...
 
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Conflicting TD advice...Help!

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(@disney14)
New Member
Joined: 13 years ago
Posts: 3
Topic starter  

We entered into a joint TD in 2007. We completed in April 2010 and were aware that there was a 36 month 'dark cloud' over us until we were free from the Debt history and could start to rebuild our financial lives. In the last year or so, we both got Credit cards through Vanquis/Granite and pay for fuel and pay it off every month, just to start the rebuild process of our credit rating.
Our 3 year dark cloud period, post completion is up in April 2013 and so I asked for advice from a local IFA. I was told that infact it was 6 years post completion before a mortgage company would touch us making it 9 years in total before we could rebuild, debt history clear! That will be 2016! As you can imagine, we are devastated as we are paying someone elses mortgage for the moment until we planned to go for our own morgage next year. Or so we thought.
I have checked out the top TD web sites, which we googled and all point to a 3 year paying off period, 3 year post completion before it's settled. It's what we were also told when entering into the TD in 2007 and had planned, as you do, up to the 6 year point. Conflicting the word of mouth I got today.

Any professional opinions would be appreciated as I'm sure we are not the only people in this position.

Thanks,


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Disney14

As far as I am aware and from my experience, the 6 years starts from the date the trust deed is signed, not completed.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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(@disney14)
New Member
Joined: 13 years ago
Posts: 3
Topic starter  

Yes Mark, thanks, thats what we thought. We have done our homework, learned from our mistakes and have recently been in a better financial position than many family and friends, oweing nothing after xmas by careful management and budgeting etc. Ok we've not had a holiday or a new car but that's not important. What annoyed me today was the guy on the phone was adamant it was 6 years post completion... hence my concerns now.
My wife has just emailed the company who organised us in the beginning and it's indeed one advertised on your web page.

Thank you for your comment and good luck to anyone else in this position. Light is at the end of the tunnel, you just have to have patience, determination and see things how they really are.

Any further advice by yourself or others welcomed.


   
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(@pinalta)
Reputable Member
Joined: 13 years ago
Posts: 315
 

[:(]In, the same position , my current provider will not look at a new deal unless I have been discharged for 3 years or more even though its been over 6 years with nothing to show on my credit file . aPART FROM NO DISCHARGE , when I was told 3 years , and if that were so , then its been 3 years since my discharge not 6 years and[:(] STILL waiting .


   
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(@disney14)
New Member
Joined: 13 years ago
Posts: 3
Topic starter  

I think your main issue is the No Discharge. Get in touch with your provider, in person if need be if the 6 year period is over. Thats what we would be doing, even if just to get answers. We have a letter to say it is complete/settled and will be chasing up as soon as we can in April 2013 to have the history removed. I think Experian should be able to advise on that. We were with them for 6 months or so but weren't getting anything out of it as we were still in this period of 'dark cloud'. So we stopped the monthly payment to them. They did however give us good advice when I called them directly.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi Disney14.

The truth here may be a little more subtle.

A trust deed shows on your credit file for six years from the start.

Mortgage lenders are free to ask on an application whether you have ever been insolvent (trust deeds or bankruptcy), or whether you have been within a specified period.

Whether they ask this type of question, and how they might use the answers, will vary from lender to lender according to their acceptance and underwriting criteria.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@blacklily)
Estimable Member
Joined: 16 years ago
Posts: 105
 

Hi Disney14,

Hopefully this will help you, I finished my TD in 2009 and the TD and defaults still show on my credit record and are due to drop off September this year.

In September 2010 I got finance for a brand new car (although couldn't get a loan for a used car!) and in September 2011 my bank that I have my current account with approved me for a joint mortgage (worth noting although my partner has no defaults etc he also has no history as never had a credit card etc but banks with the same bank as myself) my mortgage went through with no problems. I should note that we had a 25% deposit for our house which I think made a big difference in getting approved. Recently I sold my car and cleared my finance due to going on maternity leave and get a lesser valued car till getting back to work, my car has now failed MOT and my bank has approved a small loan (although am keeping fingers x as paperwork is not here yet so they could still change their mind!) to buy a new one - this is all with defaults and TD still on record.


   
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(@mrs-mac)
Trusted Member
Joined: 13 years ago
Posts: 70
 

This is great to hear. It's not that I ever want credit again but I know at some point I will need to renew my car. How long after your final payment in your td did you wait before applying for your car loan. Also how smsid you know you would have got a loan for a new car after being refused credit for a used car?


   
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(@blacklily)
Estimable Member
Joined: 16 years ago
Posts: 105
 

Hi Mrs Mac,

Good question, I didn't know but had an idea that the reason I was turned down for a personal loan was because it was unsecured (even though it was for a car) and I knew that to get a brand new car it would be secured on the car, so was really just trying and luckily enough it worked out. Years ago before my TD I had two used cars (one with Ford and one with BH - both Fords funny enough) so I opted for Ford as I thought if they did still have me on their records it would show I paid on time and settled loan (although tbh I don't think this did matter).

It was exactly a year after my TD I applied for a new car and 11 months after TD I tried with my bank to get a personal loan. Whilst in my TD I had a contract phone (Had for years) and also got the pre paid master card with credit builder on (I'm not sure if this actually helped or not, it is such a silly amount - ยฃ50 -) one month out of TD I got the Vanquis card and catalogue and used that on the lead up to getting new car (I knew I would need a car and knew I couldn't afford to save up for one in less than a year).


   
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Shona Maxwell
(@shona-maxwell)
Honorable Member
Joined: 14 years ago
Posts: 634
 

As TDA says, the 6 years is to do with your credit file. Thereafter, individual creditors all have different policies- especially regarding mortgages.

Shona is not currently posting in the Trust-Deed.co.uk forum.


   
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