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Mortgage application

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(@podgal)
New Member
Joined: 5 years ago
Posts: 4
Topic starter  

Hi,
I applied for my 1st mortgage yesterday.
My understanding was after 6 years since discharge from TD it is no longer on your record. I was discharged August 2013.
I failed at final stage when credit check was done.
Mortgage broker did ask if any adverse on credit final, I did have it in back of mind but he said in only past few years so I replied no.
When it failed we could not understand why it failed. I mentioned TD and he said that was it. However looking at experian and credit karma my TD is not there. I have a small balance on CC and that requires attention but he felt this was negligible. But my mortgage broker is convinced its my TD.
Should this be the case? Does anyone have experience in this at all? I had a 20% deposit and affordability was no issue aswell.
Any help is appreciated


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 17 years ago
Posts: 13594
 

Welcome to the forum Podgal.

Your trust deed should disappear from your credit file six years after it started (rather than since your discharge) so I'd imagine it's long gone from your credit report.

There will still be a public record of your trust deed on the Edinburgh Gazette (new cases stopped being added in November 2013) and this is a permanent and discoverable record.

So it's possible the lender found your old trust deed on the Gazette website, but I doubt that they did.

Even if they did find it I doubt that a trust deed you were discharged from 7 years ago would be of much concern to a lender.

I suspect that the trust deed isn't the issue here.

My recommendation would be to make another application with another lender (probably with the help of a broker).

Mortgage lenders may be a little risk averse in the current environment, but with a 20% deposit and affordability in place I'm sure this will work out well for you in due course.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 17 years ago
Posts: 13594
 

Which firm provides your credit card Podgal?

Some of the sub-prime high interest cards could be a bit of a red flag to a mortgage lender.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@podgal)
New Member
Joined: 5 years ago
Posts: 4
Topic starter  

Hey,
Thank you so much for getting back to me. I was pretty devastated with result as it has caused me to loose out on a property purchase. I'm happy to hear that it's probably not the TD.
My CC is with barclay card.
I was recommended to this broker as they charged no fee, whereas some normally charge. He is still pressing me to know more about my TD which I have questioned him why when info online suggests its not relevant at this stage


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 17 years ago
Posts: 13594
 

Hi Podgal,

Sorry to hear that you've lost out on a purchase.

There's a lot of uncertainty out there at the moment so mortgage lenders will be especially cautious about controlling risk.

If it's any reassurance we have heard from lots of forum members who have secured mortages in recent years much sooner after discharge than your current situation.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 17 years ago
Posts: 13594
 

I doubt Barclaycard is a particular issue, unless there's a significant balance owed that's affecting the affordability calculation.

Having a balance owed on a high-interest card like Vanquis or Aqua might be more of a red flag to a mortagage lender.

Anyone using these types of high-interest credit card after they finish their trust deed might want to:

1 - Clear all or most of the balance every month if they can.

2 - Cycle through to a more mainstream credit card as soon as they can.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@podgal)
New Member
Joined: 5 years ago
Posts: 4
Topic starter  

Thank you so much for the response again. Alot of this is very reassuring!!
Can I ask one final thing. Some part of my debt with TD was with the mortgage provider who rejected my application. Could this be a reason at all?

Again all your help is appreciated


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 17 years ago
Posts: 13594
 

Hi Podgal,

That could also be a reason why they might reject an application.

They may have their own records of your previous trust deed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 17 years ago
Posts: 4253
 

I'd say that may well be the issue, Podgal. Hopefully if you apply to another lender then you might get a different answer.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@podgal)
New Member
Joined: 5 years ago
Posts: 4
Topic starter  

Thank you for that, mortgage broker has finally come back to me with those thoughts though.
He is suggesting I need to possibly go with a specialist lender which will result in a higher rate, but I'm very nervous in this as I get the message that this shouldn't be the case.
Do you suggest any specific lenders that would be more favourable or it still should not matter due to time I have been out?


   
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