Welcome to the forum Dollybee.

There's a chance that the creditors will accept this otherwise your trust deed company wouldn't be taking the time to ask them.

One reason for this is that there would be a fair amount of expense involved in your trust deed company disposing of the assets which would diminish the return that creditors would get.

The subject of personal circumstances is a difficult one. I'm sure that due to your personal circumstances the people involved in managing your trust deed would want to do what they can to help you, but they also have responsibilities to creditors and their regulators which are very important. Your personal circumstances should however mean that if creditors were to reject the offer you should be given plenty of time to make whatever arrangements are required.

It's good to hear that you have been offered an 85% remortgage. This must really help your case as it's very unusual for anyone currently in a trust deed to be offered additional lending with a new mortgage lender. Are there any special factors associated with your remortgage that have helped this to happen?

Hi Dollybee

Dependent on how the Trustee has worded the letter to your creditors my own opinion is that you have quite a good chance of the reduced contribution being accepted. The last thing that most Trustees wish to do is to forceably place a property on the market, however they have to been seen to strike a balance between what is fair for the creditors and the debtor i.e. you.

Have you been asked to extend the period of your Trust Deed and pay additional contributions to try and reduce the sum that is outstanding?

Julie

The company will only lend my the £6000 extra if this would end the trust deed and I then be discharged, I think thats why The trust deed company are going to speak with the creditors, but I still fear they wont accept

Hi Julie,

Thanks for your reply, this forum is very helpful.
The trust deed company has offered to extend my trust deed by 2 years to pay off the arrears only. I asked them if I could make additional payments also and then after the 2 years release the equity then as I will have more available, they told me that wouldnt be an option.

So the remortgage now will bring everything to and end if the creditors agree to it Dollybee?

Hi TDA,

Yes, but only if the creditors agree, unsure how they work, they may not, they might think its not enough.

I do hope that they will Dollybee. Julie will have personal experience of such situations so hopefully her comments offer some level of reassurance to you. The creditors themselves will be making a commercial decision based upon the information presented to them. Your Trustee is unlikely to have put this information forwards if it didn't represent a reasonable creditor outcome in their view.

Hi All,

Ive still not heard anything back from the trustee and what position am in. I realised today the £6000 would only be a 75% rather than 85%, my mistake, but something is better than nothing. Therefore today I tried an indepedent mortgage broker for something at 85%, no luck there. I also tried a secured loan and again no luck. Surely there must be something out there.

Hi Dollybee.

Your post is the first time for a long time we've heard of someone being offered a larger mortgage while currently in a trust deed. It's actually quite unusual and I think it's unlikely that you'll find a larger offer elsewhere.

You may wish to contact your Trustee to find out if there has been any creditor feedback.