Thank you Nicci_36, glad to know you have at least had a successful outcome. Middleman does seem alarming though to be really honest

Some good points on here. I would agree that most people on entering a trust deed probably aren't fully aware of all options and the middle men companies seem to guide you down the TD route 'probably commission reasons'.

I think it won't be long before either the government need to put something specific in place to ensure that those with completed TD's can access a mortgage deal straight after it falls off credit report as the markets are set up by them to create discrimination and inequity. What will happen is that for many of us even though the TD is completed we were all at times of great distress mis-sold this option and as has been proven with PPI etc. entitlement to claim against being sold this is inevitable in the future.

Hi SmithyJ,

For those currently considering how to deal with their debts, it's always worth getting advice from more than one source and only getting advice from FCA authorised and registered debt advisers. I know this shouldn't be the case (people obviously shouldn't ever be taken advantage of) but this is the current reality and it's wise for people to take extra time and care when making such a big decison.

Regarding your point on mortgages I fully understand where you're coming from. Many people get into debt through little or no fault of their own, and many people become much better money managers as a result of living on a restricted budget without access to credit during a debt solution.

One point that sticks with me however is a credit reference agency presentation I attended some time ago. Their data regarding people who had previously been in an IVA (similar to a trust deed in the rest of the UK) was that, on average, this group had more credit problems in the future than those that hadn't ever been in an IVA. This may explain why many mortgage lenders want people to wait a few years after completing a trust deed before offering mortgages to them.

Hi TDA,

I get the point around potential risks of falling into the same trap again, but as you know it only takes a specific life event and this might be the only way out. In terms of housing and mortgages, I think access to these for people coming out of a TD should be a core element to any help to buy scheme, as the risk is different to racking up £20000 on credit cards where there are no assets, unlike a property which in current market will only go up in value.

I also think the current credit scoring process was only designed to ensure financial services profit, as it only serves to drive those with low scores into the cycle of only being able to obtain high interest loans etc. In every other walk of life discrimination of this kind would not be tolerated, but in this case seems that too many are making a handsome profit to be even in the slightest bothered.

I just wanted to add a quick update. 15 months after discharge from the 5 year trust deed and I have been successful in applying for a mortgage. This is with a high street lender at a good rate as well. There is light at the end of the tunnel. I should also say that I applied for broadband at the new property and my credit check failed and I was declined. How about that?

Hi Thomsen,

Obviously, everyones circumstances are different, but are you saying just 3 months after the TD fallped off your credit report a high street lender accepted your application?

I'm still waiting for my personal discharge since Feb 21 due to ongoing personal injury claim which has only recently been settled so by the time the TD company process everything my TD should fall off credit report end of Jan 23.

Even during the TD i was able to get 2 credit cards and on finishing my last payment i obtained car finance albeit not at the best rate. I would be hopeful that with both my wage and my partners we would be able to access a mortgage shortly after it falls off my file.

dos a trusted deed mean you cant get morgage when your in it or did yous need to wait til it finished just started trusted debt with j3 not need morgage until i get better job and good to no were to go when i do need 1

Hi weedannii. I think it is unlikely that you will be a get a mortgage whilst in a Trust Deed, I'm afraid. I believe most mainstream lenders will actually need you to have been discharged from your Trust Deed for 2 years before they would offer it.

In any case, you are likely to have to have some funds saved for a deposit first, which would presumably be difficult for you until afterwards given that you have to pay in as much as you can reasonably afford each month towards your debts during the Trust Deed.

Hi Kevin,

I made my 48th payment in Feb 21, and due to ongoing personal injury claim (just setted) which has delayed my personal discharge, by the time it's sorted, i'll be getting closer to end of Jan 22 where the TD hopefully falls off the credit report. Are you saying it's generally 2 years from it fallping off your credit report which mainstream lenders consider?

I think it is generally 2 years from your discharge from the Trust Deed, based on feedback we have had on this forum previously. For most people discharge is after 4 years, so it would roughly coincide with the 6-year point at which the Trust Deed should disappear from their credit report.
Obviously this isn't the case for you if your discharge has been delayed. However, I don't think there are any hard and fast rules here, and it may well be possible for you to access mortgage lending at that same point even though you may only have been discharged fairly recently prior to that.
Fingers crossed for you. It'd be interesting to hear what happens if you don't mind updating this on the forum.

Hi Kevin,

I certainly will update the forum on how things progress as I do feel it's important to share our own knowledge and experiences of the TD process.

Yes, I'm as surprised as you are. Even the mortgage advisor didn't think it was going to be possible. I don't think there is anything against mentioning company names here so it was Halifax I got the mortgage with. Their T&C's didn't specify how long you have to have been discharged for, only that it had been 6 years since you entered one. Something along those lines. I was required to put a 15% deposit down as some blemishes still linger on my credit report.

quote:

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Originally posted by SmithyJ
[br]Hi Thomsen,

Obviously, everyones circumstances are different, but are you saying just 3 months after the TD fallped off your credit report a high street lender accepted your application?

I'm still waiting for my personal discharge since Feb 21 due to ongoing personal injury claim which has only recently been settled so by the time the TD company process everything my TD should fall off credit report end of Jan 23.

Even during the TD i was able to get 2 credit cards and on finishing my last payment i obtained car finance albeit not at the best rate. I would be hopeful that with both my wage and my partners we would be able to access a mortgage shortly after it falls off my file.

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Thanks - that's really useful information, Thomsen.