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Topic starter
07/08/2016 9:45 am
Hi folks, I know no one is qualified to give mortgage advice but I was just wondering if anyone has been in a similar position and may be able to offer advice?
I received my discharge in November '15, my husband is currently waiting on his (although likely to be a few months as its with Knightsbridge!).
We own a property which currently has approx £25-30k equity, we are on a variable rate mortgage and have always prioritised these payments, we've never even been late with a mortgage payment.
We've moved out of that property as it is a flat and we currently rent it out, but we are desperate to sell it and buy a house. My question is, would our existing mortgage lender generally require us to have the TD fallped off our credit file before lending again given that we've always met our obligations to them? At this moment in time we're likely to only have a 20% deposit.
Or am I dreaming and we need to wait it out a few more years? TIA [:)]
08/08/2016 9:51 am
Hi FinishedMarch15,
As you have pointed out we are not qualified to give mortgage advice but I'm my experience it can take a couple of years for a lender to consider you for a mortgage after your Trust Deeds have completed. I think in the rare occasion someone has been successful around 1 year after. Appox 18 months ago I spoke with Glasgow Credit Union who advised they would consider someone for a mortgage 1 year after their discharge from the Trust Deed as long as they met the rest of their lending criteria. You must also live or work in a G postcode to be eligible.
The difficulty you probably face is how your credit file currently looks. I think this is the first place that you want to start. I would check to see what information is contained in this and then try to repair and rebuild this. Any official default will remain on your file 6 years from the date it was put on.
I think it will probably take you a couple of years to secure a mortgage. I would speak with a number of financial advisors about this and also your current provider to see what their lending criteria is for.
If you can rebuild your credit file over the next couple of years and save a bigger deposit these will all be positives to securing a mortgage in the future.
David is not currently posting in the Trust-Deed.co.uk forum
08/08/2016 10:02 am
I secured a Mortgage with The Nationwide exactly 2 years after discharge.
It was a right-to-buy, and we had a 20% deposit due to the discount we received.
I would perhaps speak to a broker who does "whole of market" products, but you might find it's just a bit too soon.
10/08/2016 10:44 am
Be careful if you do not have your letter 6 the trustee can take your equity, that is not given until all creditors paid, only found this out from Knightsbridge this morning. We waited 7/8 months for discharge letters from Knightsbridge despite hounding them. Hope this helps, M
AJ
10/08/2016 12:59 pm
Hi Mandy75.
I can't see a trustee issuing a debtor's discharge (Form 5) if they had any intention of gathering money in respect of equity in a home.
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