Hi haggisagus and welcome.

I think you'll find it impossible to find a mortgage lender prepared to increased the borrowings against your home while you are in a protected trust deed.

Is there equity in your flat?

Was a figure for equity discussed or agreed at the start of the trust deed?

Thanks for your very quick reply!

A few months ago my trust deed provider wrote to me asking me to consider releasing equity on my home as it was approaching its 3 year term, for the benefit of the trust deed. The company in question has now merged with another company and they recently provided me with their usual 6 month update, but no mention of re-mortgaging for equity.

My concern is if I am foreced to re-mortgage by my trust deed company to release equity, this would in effect be the same as paying the monthly trust deed payment for another x amount of years.

Is this correct? many thanks

That might well be true haggisagus, but I don't think there will be a mortgage lender out there prepared to put you in that position.

It really is a long time since we read from someone here in the forum that they've had any success with this.

The last I read (quite recently in a trade publication) was that the maximum loan-to-value mortgage available to someone in a trust deed or IVA right now is around 70%.

For most people, that's not going to raise any equity for creditors.

Thanks again for your quick reply.

Hopefully I'm worrying over nothing and I'll just be discharged without equity being mentioned again!!

Many thanks TDA

I hope that's right haggisagus.

It's up to you whether you'd want to raise the subject in advance with your trust deed firm.

If there is equity there, there may well be a requirement for you to come to some kind of arrangement with them to deal with it. You might want to be able to think about this in advance by dealing with it now.

Alternatively, you may choose to keep your head down and wait to see whether or not it gets raised at all.