Hello Random27.

It's a tricky question to answer because a recent trust deed will be just one important factor out of many.

However, it's clearly the case that it's harder for anyone with an impaired credit history to get a mortgage (and to get a mortgage on competitive terms).

The longer ago that you were discharged the better. Some mortgage lenders will have a rule that they will not consider an applicant for two or three years after they have been discharged for example. These rules may not be publicly published - but mortgage brokers should be able to find out which lenders operate which criteria.

Working on your credit file, saving up the biggest deposit that you can, allowing some time to pass, and contacting a mortgage broker, are probably the most important things that you can do to improve your chances.

A bit more background and information in the mortgage section here:

https://www.trust-deed.co.uk/repair-your-credit-rating.html

Got to a broker who covers whole of market.

I was able to get a mortgage with a High Street building society 2 years after discharge but I was lucky enough to be doing a "right to buy" and had over a 20% deposit.

As TDA says, in the meantime do everything you can to repair your credit rating and good luck

Hi Random27,

I think you will be able to secure a mortgage after the Trust Deed but it will take time.

From the point you are discharged you want to make sure you try and repair/rebuild your credit rating as quickly as possible as this will help. You also want to try and save as much of a deposit as possible as this will also help.

I do know that Glasgow Credit Union will consider lending to you 1 year after your discharge from a Trust Deed providing you meet the rest of their lending criteria. You need to live or work in a G postcode though.

AS tinsoldier advised you want to speak with a whole of the market IFA and don't just speak with one, speak with a number of them.

Thank you for your help, im at a point where i really do not know what to do for the best. My husband is 2 years into his trust deed and im trying to get a loan to cover my debt which is just over £17000. My credit score is good, the only negative is the amount on the credit cards. We are paying everything, everything is paid on time, nothing is over its limit. Its just got to the point where its getting overwhelming. My concern is in trying to get a mortgage down the line. I really dont know what to do.

Hello Random27.

I'd really suggest you get some advice about your debts. At best you'll find out everything is manageable (perhaps with some tweaks). At worst you'll find out that the debt issue is more entrenched and get some options to address that.

The issue with mortgages is that lenders have to consider affordability. If you're weighed down with heavy commitments, they might conclude that a mortgage isn't affordable for you or offer you a smaller mortgage than you need.

For some people, the prospect of getting a mortgage in the medium to long term will be better if they address their debts sooner, even if that causes credit rating issues now.

Hi Random27,

When you say your managing the £17,000 of debts are you making more than the minimum payments?

It can often be the case that people are up to date and managing but they are only making minimum payments and therefore the repayment will take a very long time.

I think it's certainly a good idea to speak with an Expert about your circumstances. They should look at your debts, what your budget is like, how much money you can afford to pay and how much will be in the budget once your husbands Trust Deed finishes. Kevin and I would be happy to help you with this if you wanted.

Having all of that information will then allow you to consider the options and decide if you need to enter into a plan for the long term benefits or if you can manage and repay the debts without the need for a plan.

As TDA has advised affordability is a factor for a mortgage lender and if you have large debt repayments this can be a negative.

It's very difficult to forecast what might be available in a few years time in terms of remortgaging. It used to be fairly easy to get extra borrowing and then it became very difficult during the credit crunch.

It is slowly easing off but it could potentially take a while before you could remortgage. I would concur with the others - you are best to make sure you have the best plan in place for dealing with your debts just now, so that when you do maybe look to remortgage in future you are not burdened by outstanding debts as well as a poor credit history.

If I knew what I know now when I was in your 17K of credit card debt I would be following the advice above and deal with that before looking to move or even thinking about a consolidation loan

If your thinking about a re-mortage to consolidate the debit fair enough but you would need the equity in the house to do that and it might not be possible without your OH's share of equity being paid into his TD.

I would get in touch with one if the guys above ASAP. You say its getting overwhelming so get your life back first then worry about a mortgage later. You pay everything on time and all up to date but do you do anything else for the rest of the month? or do just worry about running out of cash before the next payday (BEEN THERE DONE THAT). Be honest with yourself and your situation. 17K will take a long time to pay off (5 years at 360 per month 10% apr), can you keep it up if your circumstances change or is it worth going without a new mortgage for 6 years and being debt free sooner at less cost (10% apr on 17k over 5 years will cost you 4.6K)

you can search for the lending criteria online for each of the lenders and that changes regularly. Most wont touch you unless you are discharged and signed at least 6 years prior to application. They will also do affordability checks so you may have issues with that even if you don't have other arrangements to manage your debt