Sorry that is not clear in relation to my house. Our house at the beginning of the TD was valued and my share of the equity was around 11k. Would the two years after the initial 3 be to pay this 11k? That would at least double my monthly payment. I am confused about this as I keep reading posts about people having to find lump sums. This was not mentioned to me at the beginning.

If that was what was agreed, then yes. The extra two years payments are essentially contributions in lieu of equity. So, if you were unable to release the equity by way of remortgage then your Trustee would expect the extra two years of payments instead, in order to insure creditors receive a substantially similar value to the equity.

It shouldn't double your monthly payment as it should be made instead of the contribution being made in the first three years.

For example. If you were paying £200 per month.

36*200 for contributions, then
24*200 for the equity.

It does actually sound like the equity position was covered with you at the beginning as the Trustee has established your half share of equity in the property, asked that you attempt to realise it by way of a remortgage, and has also laid out a sensible contingency should you be unable to re-mortgage.

Hi Daisy55. It should really have been made clear to you exactly what they expect from you after 3 years.

I'm afraid the chances of remortgaging are probably very slim, so you are likely to be facing the extra 2 years' payments. Whether your trustee is expecting you to just carry on paying the same amount for a further 2 years, or whether they will require a higher payment in order to cover the full amount of the equity within 2 years, is quite a crucial point I'd have thought, and one that you really need to get clarified with them.

Thank you. Yes it seems failing to remortgage after the three years without changes in my circumstances would mean two further years of the same payment. I phoned today and had it clarified. I think I panicked myself reading posts about having to find lump sums but I understand that ths does not affect me.

That's good then. Interesting that your trustee seems to be approaching the equity issue very much like how it would be done down south in an IVA.

I am with Wilson Andrews but went through Gregory Pennington initially would this make a difference?

Hi Daisy55

I see you've already received some advice and have since spoken with us to clarify your equity position.

Your move from Gregory Pennington to Wilson Andrews doesn't affect how we deal with equity in a Trust Deed.

I hope this helps.

Hi there,

I also have a TD with Wilson Andrews and the layout of it seems identical to yours. I have 3 years of contributions and then a further 2 years of payments towards the equity. I understood that the last 2 years payments are still based on affordability so should remain the same unless your circumstances change.

I'm only 1 year in and it's not going fast...! But glad I did it 🙂

Thanks all for the feedback.