The stress of this must be awful... I am hoping to enter into a trust deed and your end senario is my worst nightmare! I so hope you find a solution that doesn't involve more debt. Have you challenged the 22000 figure?

Hi goneunder.

When you raised this subject in early June Kevin and I had suggested that you speak with your Trustee regarding the situation to see if there was any kind of deal that could be done.

Have you had this conversation as yet?

Hi goneunder.

I can understand the stress and I really wish that there was more we could offer in the way of advice and help.

The mortgage market is so different today (for pretty much everyone including first time buyers for example, as well as people with less than perfect credit histories) compared to how it was a few years ago. Very few people saw the changes coming, but I recognise that isn't helpful for you at this point.

Hi Guys,

I was speaking to a company about signing a Trust Deed and they did not mention much about equity at the end of the 3 year period. From reading other posts, am I correct in thinking that at the end of the 3 year period, the IP will assess your current assets and then take any value that may be contained within? If this is the case, and there is still no equity available, will the Trust Deed come to an end? There is a lot of posts out there explaining how people have had their terms extended to cover the addition value which puts me right off the idea. I have no equity at the moment, and don't suppose I will in 3 years time but I'm still a bit concerned.

Also, one of the items within my expenditure analysis is that I am having to pay for my partners HP on her car as she is unemployed and looking after our daughter. Will the IP have access to the equity in this?

Thanks in advance

Hi SkintAlly and welcome to the trust deed forum.

There are a number of recent threads where issues about dealing with equity are causing major issues for our visitors. Most are rooted in a failure for the full responsibilities of the trust deed to be explained at the start, or the enormous change in mortgage lending availability that has transpired in recent years.

There is no need for equity to be an issue at all (especially where there isn't any at the start) so long as everything is explained and understood properly at the start, confirmation of the situation is provided in writing (before signing) and the trust deed is set up in an appropriate way.

If your house has no equity (or negative equity) today many trust deed providers (including the three that have representatives answering questions here) would handle the situation in the following way:

1 - You get a letter in advance stating how the property will be dealt with, including the fact that the property will not be revalued later on.

2 - The creditors are informed that the property (which isn't an asset as it has no equity) is being excluded from the trust deed which they can then choose to accept or not (we haven't heard of them objecting on this basis).

Some companies still try to charge £500 for handling it this way; we'd suggest not to pay it as there are plenty of other companies that will do exactly the same without charging you.

When the hire purchase ends I presume the car will become the property of your partner? If so, it's not your asset so there shouldn't be anything to worry about. No harm in asking for confirmation of this in writing before signing anything though.

Hi skintally

Your post absolutely highlights a major problem, as quite a few previous posters will testify.

I think the property is the single biggest issue in a Trust Deed and the position re equity, both the value and how it should be dealt with need to be discussed fully and agreed and put in writing. If you don't, I guarantee you'll be back on the forum in 3 years with big problems. Best avoid the 'everything will be fine, honest' type of advice.

Re the car, if its in your partners name, its not an asset and cant be included. If you require it for work purposes, then its a valid.

My advice would be do nothing until the 2 matters are fully explained & confirmed in writing.

Regards

Mark

Hi TDA

Looks like we doubled up on that one there. Thankfully the advice is the same. Phew!

Mark

I'm always quietly reassured when your answers are similar to mine Mark!

Thanks Guys, that seems like a sensible thing to do. I have a meeting with them 2moro and will be sure to get everything written down. I noticed the company in question are on your recommended list which is a good sign.

Since we are on the subject, will it be frowned upon that we have two cars? My own car is worth about 6k and I need it for work to extent that I receive money for it every month. I read previously about the 3k allowance for vehicles, would this mean that I am liable for the 3K current equity above the allowance just now or would the equity in my car be valued at the end of the TD? It has 106k miles on it just now so prob won't exist in three years.

Thanks

Hi SkintAlly,

I'd confirm the position with the car at your meeting and get confirmation in writing before signing up. There seems to be some variance in how different trust deed companies handle these things.

Just in terms of the site recommending companies, the only companies we do recommend are those represented here by Mark, Kevin, Shona and George. We do acknowledge that there are plenty of other good companies out there as well. There is a scrolling list of firms on the homepage which, rather than being a recommendation, is a list of direct providers of trust deeds as opposed to intermediaries. There's plenty of good firms amongst them but we certainly don't endorse them all.

Thanks TDA,

I'm not sure if I can mention company names but I think Kevin represents this one and I've only read good things. I feel a bit guilty trying to make sure that everything works out best for me by giving back as little as possible but I suppose that is just normal. At the end of the day we don't take these steps to still be in debt three years down the line.

Thanks for your help 🙂

Hi SkintAlly,

I think you need to protect your interests and everyone would understand that. Your creditors will take a similar view about their interests. So long as everyone is open and fair (as you are being) then there should be no problems.

Hi goneunder.

Where someone clearly has equity in their home the advice would be to consider whether the means to release that equity exists. If it doesn't, the question would become whether they may be prepared to sell their home to release the equity. If they aren't, consideration would have to be given to alternative types of debt solution such as the debt arrangement scheme or a debt management plan.

Neither of these alternatives offer debt write-off so the repayment terms can be quite long for some people (as the debts have to be fully repaid by the monthly contributions).

Hi Goneunder,

I was all set for signing up to a TD until I read yours and similar other posts. I find it strange that there is no assistance or renegotiation for you at this time. Having that level of debt at the end of you TD in my opinion defeats the hole purpose. I suppose at the time tho nobody would have doubted that there would be problems in releasing the required equity in your home. Its a shame that you can't sell part of the ownership of the property to the government or something. They bailed out the banks out for less return, why can't they help you??

I suppose with me not having any equity at the moment and not likely to have any coming to me soon, I shouldn't have to make an agreement that could go badly wrong. I'll need to rethink and make sure this is the right option for me.

Hope you get a solution that suits.