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Scottish Trust Deed Forum
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Topic starter
10/08/2013 10:32 am
I've recently secured a mortgage with Nationwide and one of their criteria was that a potential customer had to be discharged from their trust deed for at least a year. I think this is very fair and Nationwide are to be commended for such a common sense approach i.e. the individual has then shown that for at least 4 years they can live within a budget etc.
I have also thought read posts on here from forum members saying they were advised that they had to be out of a trust deed for at least 6 years. Surely this cannot be true as a)It is so restrictive and b)The record of the deed would drop of a credit file 3 years after discharge.
Is there false information being banded about out there??
10/08/2013 10:57 am
Hi tinsoldier.
It's mortgage brokers putting their finger up in the wind, picking a number, and then pretending they know what they're talking about by presenting it confidently.
It's a total nonsense of course, though there's no doubt that a trust deed (or any other debt repayment problem) makes things much more tricky.
There are mortgage brokers out there who know more and who will work a little harder to try to help clients that pose a greater challenge in placing a case.
I sometimes get the sense that the trust deed obstacle is overstated here. It's important to remember that anyone who has debts they cannot truly afford to service will fail a mortgage lenders affordability checks. So is it the trust deed that's the problem, or the fact that a debt problem had to be addressed previously?
Where someone addresses a serious debt problem with a trust deed (or an alternative) is that stopping them from getting a mortgage, or creating potential to get a mortgage in the future that didn't previously exist?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/08/2013 11:23 am
Hi tinsoldier,
Well done on securing your mortgage! Can I ask, was it re-mortgage of existing home or new mortgage? And what size deposit did you have?
bos1211
10/08/2013 11:59 am
great news and a step into normality after a period in the poor credit doldrums!
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
