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Scottish Trust Deed Forum
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Topic starter
17/03/2015 9:24 pm
I originally messed up my credit rating by using a fee-paying DMP company- basically, I started getting defaults on my file during the plan which in all fairness, I was warned about. I then enquired about where my debt of £8k stood when I became my mother's carer and was alarmed to see it had barely budged due to interest/fees. Because I was no longer in full time work, I was relieved when a trust deed was suggested and then became protected.
However, things have now changed 5 months into the deed- I have a full time job again and my payments have almost tripled each month, which I am ecstatic about as according to my calculations, I will have paid back the FULL amount of debt, fees and around 8% interest in roughly 2 years. (Providing it's actually that straightforward?)
However, my query lies in the fact my father desperately wants our family home to be bought by one of his children (me or my sister). I currently reside with my fiance who owns our flat and should expect around £60k back when we eventually sell. He's agreed that we'd use some of it to pay off everything I owe. My dad's house would be sold to either me or my sister for total £200k and £50k would go to each of the 4 siblings- meaning ultimately, my fiance and I would need a joint mortgage of £100k (with a combined income of £42k between us). Is it entirely unrealistic to expect to be considered for a mortgage straight after a Scottish trust deed has ended? Should I even bother approaching a broker at all or is it a lost cause?
17/03/2015 10:18 pm
Welcome to the forum isabel1948.
Well... any answer we'll give you on the subject of mortgages will be pure speculation.
However, there's clearly likely to be a serious challenge if you've recently been discharged from a protected trust deed.
The only way to find out though will be to contact a mortgage broker when the time comes.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
18/03/2015 7:31 am
Goodness me, you were up late, TDA! Many thanks for your response. I just don't want to be gifted the house then find that after I give one sibling the £50k deposit from the flat, I cannot buy out the other 2 of the siblings... Guess it really will be a challenge!
...There is that yucky moment every so often that I think "Trust Deed? What have I done!?" but then I just need to remember how I felt 6/7 months ago!
18/03/2015 7:37 am
Hi isabel1948.
I can understand your feelings on this, but in reality your credit file will probably have already been in pretty poor shape before the trust deed. The challenge might not have been much different if you'd made different choices.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
18/03/2015 9:09 am
Hi isabel1948,
Hindsight is a fantastic thing and I'm sure that if you had of known what would have changed in the future before you entered the Trust Deed and with the increase in income you may have considered an alternative option. Like you say though, you can remember how you felt 6/7 months ago and I'm sure at that point the Trust Deed felt like the ideal solution.
I think it would be difficult to obtain a mortgage so soon after a Trust Deed but I'm no mortgage expert. Any lender will have a number of factors to consider and I suspect credit rating will be one factor. The one thing that could go in your favour is the large deposit you would be in a position to put down.
As TDA has advised your probably best to speak with a mortgage advisor about this. The mortgage advisor may be able to come up with different scenarios for you to consider. Don't be too disheartened if you speak with one advisor and they say it can't be done. Speak with a couple of advisors and take it from there.
Are any of your family aware of your Trust Deed?
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
18/03/2015 9:32 am
Many thanks for your replies! My family aren't aware of the Trust Deed but I've been digging around and worst comes to worst, we can maybe entertain a mortgage in my fiance's name alone as he has a good rating (I also wouldn't destroy his rating by applying together)... Thank you, I was a bit hesitant about approaching an advisor but I feel a bit more confident now- worst they can say is 'no'!
