Mortgages and defaults

weez89

Hi! First post…

I recently had a protected trust deed (similar to IVA) drop off my credit file as it was 6 years old. I do still have 1 settled and closed default of £2k on my credit file but it drops off in 3 weeks time as it is 6 years old (since it was registered). The rest of my file is good. My partner's is also very good and no adverse credit on theirs.

However, we've saw a house we like so might need to get an AIP now. Do any brokers here know if I would be likely to get a mortgage right now with this credit file? I believe Barclays and Halifax may be options. Thank you in advance!

ACG

Chances are you will fit criteria with most lenders.

However, things that will affect your chances are the LTV, who was included in the trust deed etc.

If Halifax/Barclays had to write off debt as part of the trust deed then they may be less likely to accept you. Likewise if you are at 95% LTV it will be a harder job than if you are at 85%.

I dont think it would be a bad idea to speak to a broker. Let them get the details down on paper and do some research.

weez89

https://forums.moneysavingexpert.com/discussion/comment/81877252#Comment_81877252

Thanks! I think our LTV will comfortably be 90%. I also don't think any debt was with Barclays/Halifax. We are meeting a broker ASAP but just wanted some reassurance from some of you lovely folk :)

Brie

When you say the protected trust deed "dropped off" your credit file do you mean that it's passed the 6 year mark or that it is no longer showing on your credit history? Some things take longer than others to update credit histories so you might want to ensure that has actually happened so as to not be asked any awkward questions or get denied completely.

ACG

Im not 100% on trust deeds with them being scotland. IVAs/DROs which I suppose are probably the closest things to them in England I would imagine you will be fine - whether it is high street rates or not is tricky to say. But if not there would be a handful of building societies who would consider it.

Being in Scotland, your choice of lenders will be smaller. Im not 100%, but I would like to think there would be options.

weez89

The trust deed is off all of my files, yep. Just this one niggling default on the file. I understand some high street banks won't touch me because in the last 6 years a trust deed has been on my file, regardless of it being gone now, but that is what it is…

Isthisforreal99

Remember that any creditors involved in that trust deed will likely keep internal records for longer than 6 years so you will need to avoid them possibly.