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Topic starter
18/07/2019 9:01 pm
This is a long and complicated story - congratulations to those who make it to the end!
In May 2017 I entered a trust deed after a nasty divorce... By October 2017 I'd paid it in full after losing my dad. It wasn't officially completed until June 2018.
In April 2018 I had paid a half share in my Mum's house, intending on sharing with my brother. But things changed and now I'm going to be the sole owner of the house, which is a home for my kids and I. I need to release funds in order to pay the 50% owed to my Mum, at about 40% of the value of the house. I'm also just going into my probationary year of teaching (so no full time contract, plus TD history).
I've found a lender to do a bridging/development loan (which is costly) but that needs an exit strategy after 12 months. I see on some websites that the trust deed could be off my credit file in 2 years, but then I saw the post below this about 6 years and still no joy) and wonder if I can realistically assume I can 'exit' this loan on the basis of a full time contract and better credit history...
What are your experiences?! And have you any advice for me in this position?
Many thanks in advance for your time...
19/07/2019 8:36 am
Hi windswept and welcome to the forum.
Sorry to hear about the loss of your dad.
My understanding is that any entry on your credit report should fall off 6 years after the date of default. Normally what happens is when you enter into a Trust Deed a lender will default their account and this will remain for 6 years. If that’s the case then if you entered the Trust Deed in 2017 it would be 2023 before these negative entries would fall off. I think this is the case even if you have paid the debts back in full, they would still show on your credit file.
How does your credit file look? Are there any default dates and does the status for the debt say satisfied or partially satisfied?
I think you need to proceed with caution regarding the bridging loan. What would happen at the end of the 12 months if you couldn’t secure a refinance and exit strategy? Would there be extra penalties and costs?
Have you reached out to a financial advisor to ask them for some advice? They could source a more competitive finance package that would allow you to do what you wanted.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
26/07/2019 12:14 am
Thanks David... I've had a look at my credit report and can't see any default dates. The section on my 'insolvency' states that it was discharged on 15/02/18 and above it does state 6 years. My credit score is currently 527, if that means anything?! The advice I've had is from a mortgage advisor - can you suggest how to proceed for more conclusive advice regarding the trust deed and mortgages? I can't go into this with fear of losing house, but need to find a solution asap! Your time and expertise are much appreciated. Cristina
26/07/2019 9:29 am
Morning Windswept
Credit reports and trust deeds are rather confusing and at times complicated. As you can appreciate there are a number of credit reports available and they all carry different information.
Just to emphasis what David said, bridging loans are intended to be used as a short term measure as the level of interest charges is higher compared to typical loan products.
I know it doesn't help but a mortgage advisor is the best person to provide advice on this issue.
p
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