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YM85
New Member

4 Posts

Posted - 31 July 2018 :  17:06:34  Show Profile  Reply with Quote
Hi
My husband has recently completed his trust deed and we need to move house as we have completely outgrown this 2 bed gouse with 4 of us in it. We are hoping to hear success stories of people who have been able to increase their mortgage following a trust deed.
Also an option I was considering is for my husband to apply for a mortgage with his mother as a guarantor?
Many Thanks

TDA (Debt Adviser)
Trust Deed Expert



12512 Posts

Posted - 31 July 2018 :  17:25:07  Show Profile  Reply with Quote
Welcome to the forum YM85.

Could you please let us know how long your husband has been discharged?

How soon would you be hoping to obtain a mortgage to purchase a larger property?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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YM85
New Member

4 Posts

Posted - 31 July 2018 :  17:48:13  Show Profile  Reply with Quote
He was discharged about 2 weeks ago and looking to get an increase in mortgage asap.
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pingpong
Advanced Contributor

123 Posts

Posted - 01 August 2018 :  11:03:49  Show Profile  Reply with Quote
You need to carefully make sure your credit reports are as clean as they can be before you start doing anything.

Defaults and the PTD record on file will fall off 6 years after they were made. you should make sure that all the default date revert to the day the PTD was signed.

Check all of the free services, ClearScore, Noddle, MSE Credit Club.
Make sure all the dates of defaults for both open and closed accounts are as of the date you signed (this will be the same date as in your public records section for your PTD).
Make sure all defaulted accounts (OPEN and CLOSED) are marked as Settled or Partially Satisfied.

for anything that is wrong write to the lender and ask them to make the correction. They should do this very quickly and you will need to send along a copy of the Form 5 at the same time

Everything will then come off at the same time which will be 6 years from the date you signed the PTD and you should then be good to apply for a mortgage just like everyone else.

You can search online the lending criteria for most high street lenders. Once your credit file has been cleaned up the criteria for decision making will shift to affordability etc.

I did the above and have been approved by a high street lender at a competitive rate. We did use a broker and that may have helped as they can go through applications will lenders without actually leaving a footprint before getting a AIP. Getting and AIP was the first step for us then we went through the affordability stuff to get the offer.

Let us know how you get on
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YM85
New Member

4 Posts

Posted - 01 August 2018 :  11:40:19  Show Profile  Reply with Quote
Thanks for this.
We are weighing up our options and wonderjng if we would be better off adding an extension onto our house with our current mortgage provider using equity from the house.
Would we still have to go through the same credit checks to take equity from our own home?

Y mac
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lp24
Frequent Contributor

28 Posts

Posted - 01 August 2018 :  14:27:36  Show Profile  Reply with Quote
Hi YM85

I was discharged in Feb 2017 and my husband
In Jan 2017. I went through credit files made sure everything was dated correctly
Etc and got Defaults changed to trust deed signed date and marked as satisfied if it wasn't.

We approached Scotwest for a 90% LTV in October 2017 who said they would give us an agreement In principle after reviewing bank Statements and credit files etc. We then put our house up for sale and found one to buy by January. Scotwest done final
Checks and our mortgage was approved in Fe rusty 2018 so a year after discharge in total but they were looking at us in October also which was 8 months after discharge.

As far as I'm aware adding to
Your existing mortgage would involve similar checks which high street banks aren't likely to approve just now.
Good luck.
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TDA (Debt Adviser)
Trust Deed Expert



12512 Posts

Posted - 03 August 2018 :  09:04:48  Show Profile  Reply with Quote
Hi YM85.

When you apply to a new mortgage lender, or seek additional funds from a current lender, you can assume that credit checks will take place. They have to really, as lenders need to make checks that any new loan is affordable for you (as well as protecting their commercial interests).

We've only heard of a couple of credit unions who will provide a new mortgage one year or longer after trust deed discharge. Other lenders (especially the mainstream ones) will consider mortgages after a longer period of time has first elapsed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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YM85
New Member

4 Posts

Posted - 03 August 2018 :  09:53:21  Show Profile  Reply with Quote
I would have thought that releasing equity from the house wouldnt have such strict check as it is easentially our money. We have at least 26,000 available as equity. Why would this be considered a loan.
Feeling rather hopeless as an extension was the last hope of getting some much needed space in our home since moving has been completely removed from our options!
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TDA (Debt Adviser)
Trust Deed Expert



12512 Posts

Posted - 03 August 2018 :  10:05:28  Show Profile  Reply with Quote
Hi YM85.

I'm sorry this will not have been the answer you were hoping for, but I'm afraid I think it's going to be really tough to make the progress you want to make for a while yet.

In the simplest of terms, it's a loan because you owe the mortgage lender the money.

The more they lend to you, and the greater the loan-to-value of your mortgage, the more risk the lender is accepting.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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pingpong
Advanced Contributor

123 Posts

Posted - 03 August 2018 :  10:52:46  Show Profile  Reply with Quote
YM85 can I suggest that you search the lending criteria for some of the high street lenders for example if you google Platform Mortgage Lending Criteria you will find a PDF for the intermediaries which basically spells out what they will and wont accept.

Here is a extract from that document

We will not consider any applicant who:
Is bankrupt, has bankruptcy proceedings pending, or who is registered on the Scottish Debt Arrangement Scheme
Has been discharged from bankruptcy within the last 6 years
Has an individual voluntary arrangement (IVA) or a Trust Deed (TD) or Administration Order, recorded during the last 6 years
Has an unsatisfied CCJ
Has satisfied CCJs recorded during the last 6 years where the total value of the judgment is more than 100. The Scottish equivalent is a Decree (DEC) and the same rules apply
Has any Default(s) registered in the last 12 months or has any Default(s) registered during the last 6 years totalling more than 500
Has any type of repossession

The relevant date in this case is when you REGISTERED the PTD as per the second clause so they are saying you should be more than 6 years from registering the PTD, and I assume discharged.

This is just and example all lenders are different but most want you to be more that 6 years from signing (which by that time all the bad stuff will be off your file) and discharged (for obvious reasons).

I had to wait three years after my discharge (I had a three year PTD) to get a mortgage but I have one now worth the wait and gave me time to save for fees and a deposit.
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