Just had the flat valued and there is £8k equity. Is it likely that the trustee will ask for this to be released at the end of the trust deed term? If so how is it likely to be done? I will obviously have a poor credit, will I need to take on a mortgage with a much higher interest rate? Also, I'm not in a fix rate mortgage just know am I going to struggle to be accepted for one going forward?
Did you do the instruction of the valuation and if so, what type did you request?
There are other posts outlining the likelihood of a valuation in the circumstances being lower due to the need for a short sale time. In this one regard, it seems to be beneficial to be advised of a low value for your property as you will then have a smaller amount to find at the end or ask family to help with.
Of course, if your IP did the instruction of the valuation, it will have been the appropriate level.
The IP organised the valuation. I've been looking at some of he other post just now. The IP has said the equity isn't enough to cover the debt so they wouldn't release it. However I guess the IP needs to get paid some way.
I wish we could give you a definitive answer, barry boy, but you really just need to discuss it further with your trustee. Different IPs treat equity differently, but if there is only £8k then I am sure a deal can be reached whereby you make some extra payments. After all, if the property was sold then there is no guarantee that any funds would be available towards your debts from the sale.
I imagine there is no chance that you could release any funds via a remortgage - these days it is just not possible. If you wish to switch to a fixed rate then this may well be possible, your lender will be able to advise you what fixed rates are available to you. However releasing equity is a different matter.