Help - Discharge and Mortgage Query
My trust deed should finish in July 2024. I'm just trying to put a plan in place for getting a mortgage in the future as still need to save up once my trust deed is finished.
I have just come off a call with a mortgage broker who says that even if I'm discharged from my debts in 2024, I won't be considered for a mortgage as it says on my credit report that my trust deed won't be discharged until 2026 but surely it should be 2024?
I have also been told that there are only a few lenders who will consider me even after this.
This has been a bit deflating as I was hoping if I was discharged this year, this would reflect my debts being satisfied and discharged.
So when my trust deed is discharged, does this remain active on my credit report or has anyone had experience of it coming off their credit report after 4 year discharge?
Is there anything that can be done to make it clear to lenders that I'm discharged from 2024 on my credit file rather than 2026?
Just looking for some hope here as it seems I have shot myself in the foot for ever getting a mortgage!
Thanks for any help.
- I was also told that lenders view Trust Deeds the same as IVAs and Bankruptcies and I thought this wasn't the case as then we wouldn't have picked to go for a specific debt management programme? Is this correct that all insolvencies are just treated the same?
Hi Lhen. I'll try to answer your queries as best I can, though it is impossible to give you definitive answers when it comes to how different lenders may view certain things.
For example, how a lender views a Trust Deed as opposed to a bankruptcy or IVA is really up the individual lender and what they are comfortable with. I would suggest they would certainly view them in a similar way to IVAs as they are roughly similar solutions, however I would imagine some lenders may view a bankruptcy as more of a black mark.
Your credit file shows everything that has happened in the last 6 years. So after you are discharged from your Trust Deed it will still show for a little while longer on your credit report that you had one. A mortgage broker would know more than myself about how different lenders will treat this, but I have heard previously that most lenders will only consider offering a mortgage once you have been discharged for 2 years. If you try searching the forum you should be able to find feedback from other members who have been in a similar position to yourself and whether they were successful or not.