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borrowing money: time with bank vs type of account (after a trust deed)
latiti
Posts: 7 Forumite
I am trying to help someone. The person I am talking about has completed a trust deed over a year ago.
They closed their bank account and opened a cash account with another bank. The bank provided a debit card, no overdraft.
The person would like to borrow more on their mortgage to repay an equity loan provided by the builder they bought their property from.
Would it be a good idea to change their bank account for a better type of account before they apply for further lending, or , is it best to apply as they are since they had this account for the past 6 years?
they are planning on applying jointly with the other party in the mortgage who has a good credit record.
They closed their bank account and opened a cash account with another bank. The bank provided a debit card, no overdraft.
The person would like to borrow more on their mortgage to repay an equity loan provided by the builder they bought their property from.
Would it be a good idea to change their bank account for a better type of account before they apply for further lending, or , is it best to apply as they are since they had this account for the past 6 years?
they are planning on applying jointly with the other party in the mortgage who has a good credit record.
some people help you carrying your stone over the mountain, life is good!!! :j
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Comments
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no takers on this one?some people help you carrying your stone over the mountain, life is good!!! :j0
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Although we do a lot of adverse, a trust deed is not something I have ever had to research for a customer so my understanding of them is limited.
I think the problem you will have on this site is that Trust Deeds are not all that common and so the likelihood of coming across someone in a similar situation is slim.
But added to that, I think there can be a lot of differences in Trust Deeds such as it not being a given that you were classed as insolvent and they can last different amounts of time?
A lot is going to come down to:
When the trust deed started,
Was your friend classed as insolvent,
What will the LTV be,
What does his credit file look like,
Who his creditors were - there are lenders more likely to accept your friend unless those lenders were involved in which case they may not be.
Being very generic, I am not sure switching bank accounts is going to make a difference one way or the other in the short term. If anything it may even go against them.
I think your friend really needs to sit down with a broker who can go through the fine details because it is those which can make or break a case.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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