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Scottish Trust Deed Forum
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Topic starter
13/05/2014 9:44 am
I wish I had found this forum years ago as it wasn't easy going through the whole Trust Deed process alone so to speak, plus we may possibly have done things so much differently as I have now seen such good advice that we would have done well to follow.
Anyhoo thankfully I have now found you and would really appreciate some (lots actually) advice in regards to a mortgage.
Both myself and my partner entered into a Protected Trust Deed each at the end of 2005/beginning of 2006. They were both discharged in the first quarter of 2009.
We are now married and in a much better position financially than we were back then - children all grown up, better jobs and the better wages this brings. We don't use credit for anything, Christmas is always fully paid for before the event and any large household items we need to buy we usually have the money in a week or so. However we are absolutely rubbish at saving - give me anything to pay up I can do it with my eyes shut (wedding, honeymoon cruise etc last year totalling about £12,500 for example, all paid for within a year).
Saving up the money for a deposit for a house however is a totally different matter, we seem to get so far then put the kaibosh on it, with things like helping the kids out when they need cookers, washing machines, a help to get through the week etc. We have 7 between us, between the ages of 18 and 30. In addition to our own home and needs never going without.
My husband has talked about buying a home several times over the years and in all honesty I was never really interested. We rent from the council so our housing costs are kept quite low; it just never really interested me before.
However within the next 2 to 3 weeks that will change as my Dad is gifting us £12,000 to spend as we wish. In one fell swoop that has actually changed my feelings towards us owning our own home as potentially this could be a deposit.
So this is where I went internet hunting for advice as I know it is going to be difficult to get a mortgage due to the PTD. I have read so much conflicting advice regarding it dropping of your credit file - 6 years from entering in to the PTD, 6 years from the discharge and 7 years from the discharge. My head is spinning.
We don't have credit cards and we have recently upgraded our Santander Account from an Instant Plus account to a 123 Account. Would we have been refused this account if there were adverse entries in our credit file? Is this good news in regards to us looking for a mortgage or does it make no difference whatsoever?
I have had 2 mobile phones in my name for about 3 and a half years with Three, paying monthly by DD with no payments missed. My partner the same with 1 mobile phone.
My Noddle credit score is 3/5. I purchased our credit reports from Equifax & Experian. I could download copies from Equifax and can't see any reference to the PTD nor are there any defaults listed. I have ordered our credit report while we were still under the PTD and couldn't see a reference then either. What should I be looking for to see this or will it have dropped off our credit reports given we are over 5 years post-discharge? Our Experian reports have still to arrive through the post.
I also haven't a clue regarding who to approach with regards to a post PTD mortgage, probably not the bank, even our own bank, although I did put our wages, deposit amount etc into their mortgage calculator which said we could potentially get a mortgage of £210,000, we would only be looking for one of about £150,000 or does this not mean much?
I have tried looking for local mortgage brokers but they are rather thin on the ground in our neck of the woods - Inverness/Nairn area. What are we best looking for? Who would be best placed to help us?
Is the Scottish Government Help to Buy Scheme (5% deposit) limited to new builds as we don't really want a new build? Are there any other schemes that may be available to us?
Many thanks for those who have managed to read this far ÔÇô well done. [:D]
Any and all advice and guidance will be gratefully received.
Lynn
13/05/2014 10:36 am
Hi Lynn
I think it is safe to say that the PTD is no longer showing on your credit file and should therefore cause no issues for a mortgage application. As far as I understand it, it drops off 6 years after the start of the Trust Deed, not the end - which would seem to be confirmed by what you are saying.
That's great that the money is available from your Dad - should help a great deal!
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
13/05/2014 11:36 am
Welcome to the forum Maia261.
As Kevin said, anything that goes onto your credit file stays there for six years. The trust deeds should have dropped off your credit files around the end of 2011 or start of 2012.
It is worth pointing out that lenders may ask whether you've ever been made insolvent on their application form. Some do, some don't. Also, some lenders might have their own records of past personal insolvencies. This might be because they were a creditor at the time, or perhaps because they've taken records from the public records at the time.
How they choose to use this information is obviously a matter for them.
A good mortgage broker might therefore be able to help identify lenders where your prospects are better. Talking to your own bank might be a good starting point though to see how you get on.
You may also wish to try to save up a larger deposit on top of the £12,000 gift. Some of that will go on legal and other costs. If there were £10,000 left that's less than a 7% deposit on a £150,000 property, meaning that you're seen as a comparatively risky borrower.
This means you're less likely to get a mortgage and, if you do, are likely to pay higher costs for it.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
14/05/2014 7:40 am
Slightly off topic(ish) but watching news on properties in London and surrounding areas with mortgages at 22 times combined salaries. How exactly does that work in terms of repayment.
Or is it too early and I've picked it up wrong!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
14/05/2014 9:40 am
Thank you all for your replies, much appreciated.
We now have a plan A, B and C so however it turns out we'll be happy. We are speaking to a couple of mortgage brokers at the moment, following advice on another website regarding mortgages I have 3 questions I am asking them - if they're not happy that I'm asking them they drop off the list. Hopefully this way I will find a good advisor/broker that can help us.
Regarding the mortgages in London and surrounding areas at 22 times combined salaries - you heard that right! Shocking that that is happening. In my opinion, this will also lead to it being more difficult for the ordinary person to get even a basic mortgage. And yes, how are they managing to repay that!? It's nuts.
14/05/2014 10:00 am
Are people getting mortgages at 22 times their salary?
Or is this what they'd need in order to get onto the property ladder there, but which is unobtainable?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
14/05/2014 10:53 am
Ah now I have woken up...............
It's average property prices that are 22 times the average earnings of local residents.
14/05/2014 2:08 pm
I thought it would be, thanks for clearing that up.
I cannot imagine any lender doing that now, even if a few were turning a blind eye to this sort of things before the credit crunch!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
13/06/2014 5:35 pm
Thought I would give you an update on our situation now in case it helps anyone else.
We found a house we fell in love with in the area that we want and had an appointment with a local Mortgage Advisor on the 20th of May where we received a Decision in Principle with the Nationwide. We decided to go ahead with the full application which was submitted on 23rd May.
We needed one more statement from our bank showing proof of £500 of the deposit which we requested on 28th May. They sent the wrong one so we requested a new one on the 4th of June, which was submitted to Nationwide on the 6th.
We have now been told that we have a formal mortgage offer and we are due to complete on the 22nd July.
We have the £12,000 from my Dad, £500 from ourselves and the house is £125,000 so 90% LTV. We already have some savings for the other costs involved so we are all sorted financially and it has all been factored in to our budget, with even a wee bit spare.
Hopefully this will give others some hope in regards to getting their lives back on track after a PTD.
Lynn
13/06/2014 7:43 pm
Fantastic news on the mortgage front!!
Life does go on after a trust deed.
paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
14/06/2014 8:59 am
Hi Maia261.
That is good news, congratulations to you.
I'm sure lots of people reading this will take some reassurance from your story so thank you for sharing it.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
17/06/2014 9:11 am
hi Maia261,
Well done on securing a mortgage and purchasing your first house. I hope the 22nd of July comes around quickly for you. It felt like a lifetime when we were waiting to complete and pick up our keys!
This will give people encouragement that there is life after a Trust Deed. Looks like you have been out of the Trust Deed's around 5 years and have managed to secure a mortgage on a 90% LTV which is excellent.
Best wishes for the future and enjoy your new home.
David is not currently posting in the Trust-Deed.co.uk forum
17/06/2014 9:20 am
It's been mentioned on the forum many times that credit scoring etc is not an exact science and this shows it to be correct given that you did not have to wait the full year.
People's experiences on the forum show that there can be positive outcomes with bank accounts, cars and even mortgages.
Well done Lynn and all the best for the future.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
