Hi Dexter10

It's difficult to say. My best advise would be that the Trust Deed will be a hindrance, however it will be decided on 2 main things. Income & deposit. Are you able to provide this. I think also the loan to value will have an impact on the decision. Fingers crossed.

Mark

Hi dexter10.

Congratulations on completing your trust deed.

Have your creditors marked your defaults as being "satisfied" since your trust deed ended?

The advice from mortgage brokers is that this is very important.

Thanks for both replies xx
Yes im on ?ú30'000 a year and if a deposit is required then yes, how much though not sure, eeeeeeeeeeeek ! Im in a permanent post as well.

I have checked the defaults on my file and they dont appear to have satisfied next to them. How long befor they have satisfied next to them? should i contact the companies ?

I will hear back from one advisor later today or tomorrow. A search will be done for 90% then 75%. Other advisors have simply said they cannot help.

You should contact each lender to ensure that they have marked any "defaults" as satisfied dexter10. I'd suggest you liase with your mortgage broker first, different lenders use different credit ratings agencies so you'll want to ensure your starting point is the right credit report (they can be surprisingly different).

I might be missing something here, but my reading is that you are looking to borrow ?ú40000 for a home valued at ?ú75000? If that's the case you effectively have a 47% deposit already in terms of the security provided to the lender.
Have I misunderstood?

Thanks TDA yes thats right because its a family home i am getting it cheaper, my grandfather wants me to have it and my two aunts who have power of attorney can decide how much it is sold for.

Another advisor did say to me the same that effectively i have that in my favour, if i had a clean slate and waere squeaky clean then i would have not had to pay a deposit, but because of my trust deed etc then any mortgage provided would most likely require me to pay a deposit xx

I'm not sure whether I understand that advice dexter10.

The purpose of a deposit is purely to reduce the risk (to the mortgage lender)of property prices declining and a scenario that they had to repossess the property.

For example if you put down a 10% deposit, and property prices go down 20%, a reposessing mortgage lender will lose money.

If a 30% deposit had been put down, and property prices went down 20%, a reposessing mortgage lender would cover the mortgage debt at sale.

You're only asking for 53% loan-to-value mortgage. As such your mortgage lender has an almost certain prospect of being repaid if something went wrong. As such your credit rating should be less important to a lender than it would be where a more standard 70%/80%/90% mortgage was being looked for.

I just contacted one of the advisors and he said that the value of the house to the mortgage im looking for would not make a difference in my application at this point.....

It might not do for certain specialist products I suppose, but I'm guessing that this is because your broker has factored in the low loan-to-value already when drawing up a list of options.

Best to follow the expert advice of your broker(s) here who I think have a decent chance of helping you in these circumstances.

Hope so ill keep you posted xx
Believe !

Hi again
Had a promising phone call from Solution Mortgages, has anyone dealt with them ?
The advisor assured me that the lenders who they use look at your defaults etc and the majority of mine are due to come off this year, as most were defaulted in 2005.

He will look at my case tomorrow, but it sounded promising.

I asked about the rates of their lenders, after he took all my details, he said their lenders were 6/7% and that after a couple of years i would be able to go to high street lenders.

He also said like you TDA that the 57/43 percent on the price i am getting the house for would be taken into consideration re any mortgage provided.

Fingers crossed xx

Hi there
It ended up too early for me to get a mortgage and i was advised to wait another couple of years.

Hi dexter10.

I'm sorry to hear that.

There have been a couple of media reports recently that mortgage availability, where there are credit issues on record, has been improving slightly.

Clearly however mortgage availability is very restricted for everyone at the moment and any kind of debt arrangement or solution, including a protected trust deed, isn't going to help matters in this lending environment.

I'd suggest, if you wish to, that you give it another try in six to twelve months as the mortgages on offer change on a very frequest basis.

To share my own experience on this matter...

My fiancee and I spoke with a mortgage advisor recently. After explaining the situation regarding my Trust Deed, we were advised that there is basically no chance of obtaining a mortgage in my name for the foreseeable future. This confirms what I had suspected.

My TD finishes in June of this year, so at that point it will be a case of ensuring all defaults are marked "satisfied" and then rebuilding my credit score from there. Meanwhile, we will be putting money aside each month for a deposit. Hopefully, another 2 or 3 years down the line I will be in a much stronger position.

I'm sure that you will be imcville and thank you for sharing this information.

I'm not aware of any mortgage lender that is currently prepared to offer a new mortgage to someone who is currently in a protected trust deed.

This should be a note of caution to anyone with considerable equity in their home, who is considering starting a trust deed, and who has been advised that they can simply remortgage towards the end of the trust deed to release the funds. That hasn't been possible for years, but sadly we still hear from time to time from people who are being told this by "trust deed advisers" who either don't know what they're talking about or who will say anything to pocket a bonus.