Mortgage Approved After a Fully Repaid Trust Deed and £58,000 of Historic Defaults
A case study showing how a previous homeowner secured a mortgage after completing a Trust Deed and resolving £58,000 of historic defaults.
- Publication date
- Case ID:
- 336025005
Question:
"Can I still get a mortgage if I had a Trust Deed and lots of old defaults, even if everything is now settled?"
Customer situation
Single applicant
Previous homeowner
Permanently employed with regular overtime
60% deposit gifted by parents
Standard residential property in Scotland
A Trust Deed, registered around 4 years ago and successfully repaid and satisfied in 2025
Multiple historic defaults totalling around £58,000, recorded 3–4 years ago and fully satisfied at the time of application
Historic missed payments on car finance and a previous mortgage, fully resolved with no ongoing arrears
Why This Wasn't Straightforward
While all historic credit issues had been cleared, lender choice was still shaped by:
- A Trust Deed that had completed relatively recently
- The volume and total value of historic defaults
- Some lenders' reliance on automated credit scoring, even where debts are settled
- A gifted deposit, which requires additional checks
The Outcome
Mortgage approved.
The lender took a balanced and common-sense view of the wider circumstances. The large deposit, stable employment, and the fact that all adverse credit — including the Trust Deed — had been fully resolved allowed the lender to focus on the overall strength of the application rather than past difficulties alone.
Key points
- Loan-to-value
- 40%
- Mortgage term
- 26 years
- Lender type
- The mortgage was approved by a specialist lender with flexible criteria, less reliance on automated credit scoring, and a willingness to assess historic credit issues in context
- Mortgage Adviser
- Ava Conroy
Who This May
Be Relevant For
Applicants seeking a mortgage after a fully repaid Trust Deed
Buyers with large-value historic defaults that have since been settled
Previous homeowners concerned that past insolvency still affects mortgage eligibility
Applicants declined for a mortgage despite having no active adverse credit
Plain-English Summary
This case shows that even significant past credit problems do not automatically prevent homeownership. Where issues have been fully resolved and the wider picture is strong, lenders may still be prepared to lend. As time passes after a Trust Deed, options can change as lender criteria evolve.