Can I get a mortgage after a trust deed? It’s a question many people ask after completing a trust deed. The process can feel overwhelming. The impact on your credit report may make homeownership seem out of reach.
The answer is yes, but with conditions. Time must pass after your trust deed ends. Most lenders require at least 12 months, sometimes longer. Your credit score must show improvement. Lenders want proof of stable finances and reliable payments. A larger deposit is often needed—sometimes up to 25%. Mainstream banks may not help, but specialist lenders can. They work with people who have past credit issues. Lenders will also check affordability in detail. They want to see that you can handle future payments.
Getting a mortgage after a trust deed is harder, but not impossible. With time, strong financial habits, and the right advice, you can still buy a home. A mortgage broker who handles credit issues can help you find your best option.
What is a Trust Deed?
A trust deed is a formal agreement to repay part of your debts over a fixed period, usually four years. It is a legal form of insolvency. The agreement helps manage unmanageable debt. A trustee handles your payments and deals with creditors on your behalf.
A trust deed impacts your credit file immediately. It stays on your credit report for six years from the date it begins. This is true even if the arrangement ends in four years. Your credit score drops. Access to new credit becomes difficult. Getting a mortgage, loan, or even a phone contract can be challenging during this period.
Lenders see a trust deed as a red flag. It shows that you struggled to repay previous debts. It places you in a high-risk category. Even after the deed ends, lenders remain cautious. They may see you as more likely to default again.
Lenders rely on credit history to judge risk. A trust deed tells them you failed to meet past payment terms. This makes them stricter. They may ask for a higher deposit, reject your application, or charge higher rates.
A trust deed helps solve debt problems—but it leaves a lasting mark. It affects your credit rating and how lenders view your financial reliability.
How Long Do I Have to Wait After a Trust Deed for a Mortgage?
After a trust deed ends, most lenders require a waiting period of 3 to 6 years. This matches the time it stays on your credit file—six years from the start date. Lenders remain cautious as long as the trust deed is visible.
Your credit file needs time to recover. Even if the trust deed lasted only four years, the record limits your borrowing until it drops off or its impact fades. Lenders want to see a clean credit history before they approve a mortgage.
This waiting period shows financial stability. Lenders want proof that you now manage money well. They look for steady income, no new problem debts, and consistent payments.
Time also helps you rebuild credit. Paying on time, staying within limits, and avoiding new debt raises your score. A stronger credit score increases your chances of approval and lowers your risk.
Some specialist lenders may consider you after three years. You will need a larger deposit—usually 15% or more. You must prove you can afford the loan and be transparent about your past.
The exact timing depends on your credit profile and the lender. Patience and good financial behavior are key to getting a mortgage after a trust deed.
What Steps Can I Take to Improve My Chances of Getting a Mortgage After a Trust Deed?
You can increase your mortgage chances by improving your financial profile. Lenders want to see responsibility, stability, and a lower risk of default.
It takes time and effort to strengthen your creditworthiness, but the right steps can significantly increase your mortgage approval chances. These steps help show that you’re financially ready.
1. Make all payments on time. Pay every bill, loan, and credit card before the due date. Missed or late payments damage your credit score and suggest financial instability. A clean payment history shows you’re managing money well.
2. Manage existing credit carefully. Keep credit card balances low. Avoid maxing out cards or applying for unnecessary credit. Responsible use helps build trust with lenders.
3. Register on the electoral roll. Make sure your name and address appear on the electoral register. Lenders use it to verify your identity, which improves your credit profile.
4. Save a larger deposit. Aim for a deposit of 15% to 25%. A higher deposit shows commitment and reduces lender risk, improving your chances of approval and better loan terms.
5. Maintain stable employment. Lenders prefer steady income. Full-time work or consistent self-employment proves you can manage monthly repayments. Long-term employment strengthens your application.
6. Control your spending. Track your expenses and cut unnecessary costs. Avoid large financial commitments before applying. Lenders review your bank activity to check if you live within your means.
7. Avoid new debt. Hold off on new credit cards, loans, or buy-now-pay-later deals. New debt increases your risk profile and weakens your application.
8. Check your credit report. Get your credit file from Experian, Equifax, and TransUnion. Dispute any errors. A clean and accurate report supports your case.
9. Build positive credit history. Use a low-limit credit-builder card for small purchases. Pay it off in full each month. This shows that you can now handle credit responsibly.
10. Speak to a specialist broker. A broker who deals with bad credit knows which lenders may accept your application. They can guide you to the best options and present your case clearly.
Together, these steps show lenders that your trust deed is in the past—and that you’ve taken control of your finances. A strong deposit, stable income, clean credit file, and responsible habits are key to unlocking mortgage approval after a trust deed.
What Kind of Lenders Offer Mortgages After a Trust Deed?
Mainstream lenders follow strict criteria. Most decline applications from anyone with a recent trust deed. Lenders view trust deeds as a sign of past financial risk. Even after discharge, the mark stays on your credit file for six years. This makes approval from high street banks difficult, especially within the first few years.
Specialist lenders work with borrowers who have adverse credit. These lenders understand trust deeds and past financial challenges. They offer mortgage options to those turned away by traditional banks. However, they often charge higher interest rates and fees. Some may also require a guarantor or a larger deposit—usually around 15%.
Mortgage brokers play a key role after a trust deed. A broker has access to niche and specialist lenders not available to the public. Brokers know which lenders are more flexible with credit history. They match your profile with the right mortgage products. A broker can also help you secure better terms and guide you through the process.
What Type of Lender Is Most Likely to Say Yes?
Specialist lenders are the most likely to approve a mortgage after a trust deed. These lenders focus on high-risk borrowers with credit history issues. Some high street lenders may consider your application after several years and with a strong financial profile. Lenders who accept higher deposits, charge higher interest, or require guarantors are often more flexible.
Start by speaking to a broker who specializes in bad credit mortgages. Gather your financial documents. Save a larger deposit. Stay realistic about rates and terms. Avoid applying to multiple lenders without advice, this can hurt your credit further.
What Information Will I Need to Provide When Applying for a Mortgage After a Trust Deed?
You must be transparent about your financial history. Lenders expect full disclosure of your trust deed. Hiding past insolvency can lead to rejection.
You must prepare key documents in advance. Lenders will ask for proof of income such as payslips, bank statements, or tax returns. You must also show evidence of your deposit and provide ID and proof of address. If your trust deed has been discharged, include the discharge certificate. These documents show stability and readiness to take on a mortgage.
Lenders will check your financial history in detail. They review your credit report, income, expenses, and overall affordability. They want proof that you can manage regular payments without risk.
Full honesty and strong documentation give you the best chance. The more prepared and upfront you are, the smoother the process will be.
Conclusion
Yes, you can get a mortgage after a trust deed. But you must meet certain conditions. Time must pass. Your credit must improve. Your finances must be stable. Most lenders expect a larger deposit and a clear record of repayment.
High street lenders may reject you early on. Specialist lenders are more flexible. They work with people who have a history of insolvency. A mortgage broker can help you find the right lender and guide you through the process.
The path is harder, but not blocked. With patience, discipline, and the right advice, homeownership is still within reach. Every on-time payment, every saved deposit, and every careful decision brings you closer.
Your past does not have to define your future. A trust deed may leave a mark, but it doesn’t close the door. You can still buy a home. You just need the right steps, and the right support.