Welcome to the forum. Is there any equity in the property? Is it a joint mortgage? If it is this may impact your hubbys credit rating as it shows a financial link between you. Going through your questions yes it will impact on your ability to change mortgage deals,fees do vary somewhat but its more important to be happy working with someone you are comfortable with, it may cause issues for normal bank accounts for a few years but some banks offer suitable accounts for those in trust deeds.

I would look into the das (debt arrangement scheme), which may be another option for you.

Paul

Thanks for your reply Paul. It is a joint mortgage. I had thought there was 10k equity in the house but KPMG said that one way to protect the house would be to use the 90 day valuation which would show the house having no equity. I could then pay the £500 to pay any increased equity over the 3 year term of the trust deed.

How will it impact our ability to renew the mortgage deal with the same lendor?

Thanks Paul, I am looking into the DAS now.

Please research a few companies and dont just go with the first one you come across. Have a good read of this forum - lots of advice and experiences of different companies

It is hard to say whether or not entering into a trust deed would affect moving onto a new deal with your mortgage lender. It really depends upon the lender's criteria but you stand a better chance if you have kept up your repayments to them without any problems previously. Loan-to-value will often come into it too, which may cause a problem for you anyway if you have minimal equity.

Worst case scenario is that you go onto the lender's Standard Variable Rate instead - however given the Bank of England base rate is still being kept at an historic low, then the SVR may hopefully not be too bad if that is all that is available.

By the way, DAS does affect your credit rating too, so also may affect what deals you might be offered.

Hi peachy1
I agree with Kevin's comment on the mortgage side of things. It shouldn't affect your husbands credit rating if he applies for credit on his own. Some banks do not allow you to open up an account if you are in the Trust Deed. You should seek face to face free advice before proceeding and an income and expenditure carried out to establish what contribution you could afford that way you can decide whether DAS or Trust Deed is best suited.