Can I get a mortgage with a Trust Deed?

The short answer is yes – it will. Whilst in a Trust Deed, credit reference agencies will be informed of your circumstances which may make them less inclined to loan you money. One option for you if you still want to apply for a mortgage with a Trust Deed is to seek the advice of a mortgage broker.

What happens with a Trust Deed Scotland?

A trust deed is a voluntary agreement between you and the people you owe money to (also called your creditors). You agree to pay a regular amount of money towards your debts and at the end of a fixed time the rest of your debts will be written off.

Is Trust Deed Scotland any good?

Trust Deed Scotland claim to have hit over 3,000 positive reviews on Trustpilot in 2020 – and they are not lying. If you look them up on Trustpilot you will currently find over 3,300 reviews with 97% of those reviewers awarding them five stars.

What is a Protected Trust Deed in Scotland?

A protected trust deed is a legally binding arrangement in Scotland where you make reduced payments over four years. At the end of this time, your unsecured debts are usually written off.

What is the principal advantage of a Trust Deed over a mortgage?

A deed of trust has a crucial advantage over a mortgage from the lender’s point of view. If the borrower defaults on the loan, the trustee has the power to foreclose on the property on behalf of the beneficiary.

How long does a Trust Deed last in Scotland?

The Trust Deed is a debt solution that’s only available to residents of Scotland and typically lasts for 48 months although there are some factors that can affect the length of time that a person would be in a Trust Deed.

How long does a trust deed last in Scotland?

Can you put a mortgaged property in trust UK?

If you own a mortgaged property and wish to place this into trust during your lifetime, we may be able to assist. Ordinarily, property trusts must have the legal title in the name of the trustees. This means that, for the trust to be registered correctly, the legal owner needs to transfer their title to the trustees.

Does a Trust Deed affect credit rating?

Yes. Entering into a Trust Deed will affect your credit rating for 6 years from the date the Trust Deed begins.

What is the difference between a trust deed and a Protected Trust Deed?

An unprotected trust deed is not binding for a creditor (company or other) who doesn’t agree to the terms. A Protected Trust Deed meanwhile is binding for the creditor, although they have a 5 week period in which to appeal. It’s in the interest of the trustee to have the trust deed protected, but it’s not essential.

What is the most significant difference between a mortgage and a deed of trust?

The basic difference between the mortgage as a security instrument and a Deed of Trust is that in a Deed of Trust there are three parties involved, the borrower, the lender, and a trustee, whereas in a mortgage document there are only two parties involved, the borrower and the lender.

How much does a deed of trust cost UK?

The fee for a Declaration of Trust will be from £600 plus VAT and will depend on the complexity of the document, the number of clauses it incorporates and any additional consultations required during the drafting process. Following an initial meeting the fixed fee will be confirmed.