Getting a Mortgage After a Trust Deed?

poppyj

Hi all,

I have a question regarding Trust Deeds because I’m totally confused – I’ve had conflicting advice from everyone.

I have a Protected Trust Deed and have always kept up with it – my partner and I had a terrible couple of years where we were both made redundant, then he had a serious accident which left him with a disability, I had 3 miscarriages and a basically a horrible series of circumstances which were completely out of our control led to signing the Trust Deed, and I’ll be discharged this time next year (yippee!)

All this time we have been renting, paying £600 per month, (we live someplace v expensive due to the type of work I do and don’t have much choice) so I know that we’ll be able to handle a mortgage with no problem – we’re also both working now and earn £55k a year between us.

What I want to know is, what are the chances of us getting a mortgage when I’m discharged? My partners credit history is pretty bad too, but we should have at least an 8K deposit saved up by the time I’m discharged.
After all of the hard work we’ve put in to pull ourselves out of a bedsit in a red light district and into a pretty little bungalow, with a car, computer and all of the things we never thought we’d have, I’m worried that we still won’t be able to get a home of our own.

Does anyone know the likelihood of getting a mortgage? I have spoken to my TD practioner, the CCCS, trawled various forums and have had different advice from each. Some say that its unlikely that we would get one within the next 3 years, others are saying that having paid my TD religiously alongside such high rent will stand us in good stead, and I’ve also been told that we would have no problem from the day following discharge. You can see why I’m confused...

Any advice would be gratefully received!

Thanks

j

Richard_S

Hi poppyj,

Maybe the reason you're getting conflicting advice is because everybody has different experiences of the same process. For certain, there are lenders who specialise in mortgages to "sub prime borrowers" (I hate that expression too :eek:) and you will pay more than a high street lender, but once you've established a track record you are more likely to be accepted by a more traditional lender.

It's not going to be an easy goal to achieve but it's eminently possible. You do have a reasonable income and if you can manage to save a larger deposit it would improve your chances even more.

Regards

Richard