Trust Deed Forum - Mortgage application
Trust-Deed.co.uk
Home Home Page









Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 Mortgage application
 New Topic  Reply to Topic
Author Previous Topic Topic Next Topic  

Podgal
New Member

4 Posts

Posted - 24 July 2020 :  17:14:58  Show Profile  Reply with Quote
Hi,
I applied for my 1st mortgage yesterday.
My understanding was after 6 years since discharge from TD it is no longer on your record. I was discharged August 2013.
I failed at final stage when credit check was done.
Mortgage broker did ask if any adverse on credit final, I did have it in back of mind but he said in only past few years so I replied no.
When it failed we could not understand why it failed. I mentioned TD and he said that was it. However looking at experian and credit karma my TD is not there. I have a small balance on CC and that requires attention but he felt this was negligible. But my mortgage broker is convinced its my TD.
Should this be the case? Does anyone have experience in this at all? I had a 20% deposit and affordability was no issue aswell.
Any help is appreciated

TDA (Debt Adviser)
Trust Deed Expert



13429 Posts

Posted - 24 July 2020 :  17:35:48  Show Profile  Reply with Quote
Welcome to the forum Podgal.

Your trust deed should disappear from your credit file six years after it started (rather than since your discharge) so I'd imagine it's long gone from your credit report.

There will still be a public record of your trust deed on the Edinburgh Gazette (new cases stopped being added in November 2013) and this is a permanent and discoverable record.

So it's possible the lender found your old trust deed on the Gazette website, but I doubt that they did.

Even if they did find it I doubt that a trust deed you were discharged from 7 years ago would be of much concern to a lender.

I suspect that the trust deed isn't the issue here.

My recommendation would be to make another application with another lender (probably with the help of a broker).

Mortgage lenders may be a little risk averse in the current environment, but with a 20% deposit and affordability in place I'm sure this will work out well for you in due course.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13429 Posts

Posted - 24 July 2020 :  17:37:09  Show Profile  Reply with Quote
Which firm provides your credit card Podgal?

Some of the sub-prime high interest cards could be a bit of a red flag to a mortgage lender.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

Podgal
New Member

4 Posts

Posted - 24 July 2020 :  18:39:32  Show Profile  Reply with Quote
Hey,
Thank you so much for getting back to me. I was pretty devastated with result as it has caused me to loose out on a property purchase. I'm happy to hear that it's probably not the TD.
My CC is with barclay card.
I was recommended to this broker as they charged no fee, whereas some normally charge. He is still pressing me to know more about my TD which I have questioned him why when info online suggests its not relevant at this stage
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13429 Posts

Posted - 24 July 2020 :  22:48:32  Show Profile  Reply with Quote
Hi Podgal,

Sorry to hear that you've lost out on a purchase.

There's a lot of uncertainty out there at the moment so mortgage lenders will be especially cautious about controlling risk.

If it's any reassurance we have heard from lots of forum members who have secured mortages in recent years much sooner after discharge than your current situation.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13429 Posts

Posted - 24 July 2020 :  23:01:19  Show Profile  Reply with Quote
I doubt Barclaycard is a particular issue, unless there's a significant balance owed that's affecting the affordability calculation.

Having a balance owed on a high-interest card like Vanquis or Aqua might be more of a red flag to a mortagage lender.

Anyone using these types of high-interest credit card after they finish their trust deed might want to:

1 - Clear all or most of the balance every month if they can.

2 - Cycle through to a more mainstream credit card as soon as they can.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

Podgal
New Member

4 Posts

Posted - 25 July 2020 :  11:49:01  Show Profile  Reply with Quote
Thank you so much for the response again. Alot of this is very reassuring!!
Can I ask one final thing. Some part of my debt with TD was with the mortgage provider who rejected my application. Could this be a reason at all?

Again all your help is appreciated
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13429 Posts

Posted - 26 July 2020 :  08:08:45  Show Profile  Reply with Quote
Hi Podgal,

That could also be a reason why they might reject an application.

They may have their own records of your previous trust deed.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

Kevin Mapstone
Trust Deed Expert



3868 Posts

Posted - 27 July 2020 :  11:34:46  Show Profile  Reply with Quote
I'd say that may well be the issue, Podgal. Hopefully if you apply to another lender then you might get a different answer.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
Go to Top of Page

Podgal
New Member

4 Posts

Posted - 30 July 2020 :  17:35:45  Show Profile  Reply with Quote
Thank you for that, mortgage broker has finally come back to me with those thoughts though.
He is suggesting I need to possibly go with a specialist lender which will result in a higher rate, but I'm very nervous in this as I get the message that this shouldn't be the case.
Do you suggest any specific lenders that would be more favourable or it still should not matter due to time I have been out?
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2020 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.