Hello buckeye and welcome.

If a financial application asks about trust deeds or personal insolvency in general the question, as it is written, needs to be answered truthfully. The only relevant timeframe is the one set out in the question.

In terms of 90% loan-to-value it's a tough question to answer. An aged personal insolvency is just one factor out of very many that might be important.

Amy
Could you please explain your answer in more details? Sorry but I am not sure if I understand it (language barrier).
Thanks

No problem.

Some mortgage applications ask whether you have ever been personally insolvent. This might include a Scottish trust deed or sequestration.

Sometimes we're asked whether a trust deed more than six years old needs to be declared.

This seems to be a confusion between what a credit record chooses to show and what a potential lender chooses to ask. They're two different things. Any financial application needs to be completed fully or accurately as lenders are entitled to ask pretty much what they wish and then make lending decisions accordingly.

In short, the fact that something doesn't show on your credit record any longer doesn't make it OK to say it never happened.

Does that help or have I tackled the wrong part of the question?

Lots of mortgage lenders want more of a deposit nowadays so perhaps its simply down to LTV.

A credit history with nothing on it is just that. Lenders want to see a historic image of repayments so making sure there are positive entries is just as important as ensuring negative things like defaults and insolvencies drop off before applying for credit.

Paul

Thanks TDA, that answers my question on the other thread!

So if the application asks 'have you ever been declared bankrupt or insolvent' would this also include a trust deed? I can't seem to find a definite answer anywhere. The reason for asking is that the bank never asked this question while doing the application and it was myself that brought the past trust deed to their attention and they then ticked the bankrupt/insolvency box. With the trust deed no longer showing on the credit report would the bank have any other means of getting this info. I understand the part about having good credit showing is just as important as not having bad credit and I would never lie in order to obtain credit, but I feel that as soon as you mention any trust deed you're onto loser.

Hi buckeye.

A trust deed is a form of personal insolvency. Therefore, if asked about insolvency the answer would be "yes".

A trust deed is different to bankruptcy. If asked whether you had been bankrupt you could say "no".

I think the point is that a lender is free to ask for information that helps them to make lending decisions that make commercial sense to them. If you don't answer such questions truthfully and get the loan on a false basis you're very open to accusations of fraud.

Thanks for that TDA, out of curiosity it was Lloyds TSB as that's the bank I'm with. Now seeing the other post on here about them closing down accounts do you think the two could be related ie: they don't want ex trust deed customers either?

Hi buckeye.

The High Street banks aren't generally much good for mortgages if you have had any credit problems.

Mortgage brokers can point you towards lenders that are less well known and have more open minds.