Welcome to the trust deed forum lorrs.

I think you'll struggle to increase your mortgage while you remain in a trust deed. It's a very long time since we heard from anyone here that has been able to do that.

HBOS would be extremely likely to credit check you if you asked to increase your mortgage, at which point they would be aware of your protected trust deed.

You may be able to negotiate an extension of your trust deed to pay over the value of the equity in monthly installments.

If it's an option for you, you may well prefer to borrow the money from a relative so that you can get discharged from your trust deed quickly and move forwards from there.

im in the same boat but they havent told me yet what i have to pay the thing that gets me is you go into these things to get out of debt but since the financial market has went down hill to remortgage is no longer an option they want you to get the money threw friends and family which if your lucky to have anyone with thousands that they want to give away you will prob have to make it a loan then back to square one you go,straight back into debt or as iv been told, sell your house to pay the equity ,then id be homeless cos i cant buy again no money for a deposit and the exact words when i signed up for the trustdeed was dnt worry the equity will be paid at the end threw a remortage that was 4 years ago people who have equity in ther homes my advise is dnt go for a trust deed because by the looks of it im going to lose my home because no bank ect will touch you this has been a nightmare and theres still a long way to go i also feel that help should be available at the latter stages it is quite sad to pay your trustdeed for 4 years then lose your home at the end

It is an extremely sad scenario sallymilne.

We need to be fair to insolvency practitioners in this thread as well though. They, like the rest of us, did not know that mortgage lending conditions would change so dramatically.

They also really do not want to force people out of their homes. It's the absolute last resort. The thing is that they have legal responsibilities when someone appoints them to be their Trustee, part of which is to deal with assets that vest in them when their client chooses to sign a trust deed.

You are absolutely right to advise people with equity in their homes to be cautious about signing a trust deed unless there is a clear and realistic plan to deal with the equity put in place from the start.

I would suggest extending the term to allow you to pay up the equity yourself. How long this will take will depnd on how much you are paying every month. Either that or ask a relative, and you can pay them back instead of the Trustee. TDA is correct in saying that to sell a house is a last resort, or at least should be.

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Originally posted by sallymilne

im in the same boat but they havent told me yet what i have to pay the thing that gets me is you go into these things to get out of debt but since the financial market has went down hill to remortgage is no longer an option they want you to get the money threw friends and family which if your lucky to have anyone with thousands that they want to give away you will prob have to make it a loan then back to square one you go,straight back into debt or as iv been told, sell your house to pay the equity ,then id be homeless cos i cant buy again no money for a deposit and the exact words when i signed up for the trustdeed was dnt worry the equity will be paid at the end threw a remortage that was 4 years ago people who have equity in ther homes my advise is dnt go for a trust deed because by the looks of it im going to lose my home because no bank ect will touch you this has been a nightmare and theres still a long way to go i also feel that help should be available at the latter stages it is quite sad to pay your trustdeed for 4 years then lose your home at the end

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Sallymilne how much equity do you have in your property? A whole of market broker should be approached,as it is possible(sometimes) to get a remortgage,but LTV's are no longer available at 90-110%.

I agree though that anyone with a decent amount of equity should be wary of being told not to worry about the equity as it can be sorted later!!

Equity should always be dealt with at the beginning of a trust deed so you know throughout what will happen.

Paul

i do feel that to ask a friend or member of my family to pay my debt yep sure i will be paying them back but like i said before not many people now have a spare £10000 or so lying about to give so do you ask them to go into debt for you and try and get a loan from the bank ect how does that work what if i lose my job become ill cant pay them and they are left to pay this is what i dnt understand you go into a trustdeed to help get out of debt then you have to go back into debt to end it yep i own my house and dont want to lose it the equity was delt with at the start £25000 they asked us to pay at the end with a remortage house prices have fallen so much i think the equity is now around £15000 that they will ask for so extra payments at the end are kind off out of the question dnt think they will let me pay it back over 20 years this is and has been a very very stressful nightmare from the start just dnt no where to turn

I would get an up to date forced sale valuation and ask your trustee to re-evaluate the equity figure,it may be much less than you think.

Paul

they have said that they would re-evaluate just waiting on word any day now for there reply
what is a forced sale valuation never heard of that

Forced sale valuation is where you want a quick move on the sale for whatever reason and is often lower than the value if you were willing to sit with the house on the market for 18 months.

Fingers crossed that the value comes in lower.

Paul

thanks for the advice. I think I'll ask a relative for the money.

thanks for your help who do i ask to do this would it be a local estate agent or the trust deed company

The valuation would need to be done by a surveyor, familiar with the local market. They will be very familiar with a forced sale valuation, unfortunately very much so just now. A forced sale of anything eg your car when you're emigrating in a week, causes the sale price to be lower - same with houses. The trustees are obligated to gather funds in from equity to have it available for paying toward the total debts. I think you might get a pleasant surprise in a roundabout way! Although we usually want our house to gain in value, at this time you might not. If dropping house values are applied as well as a quick/forced sale valuation, the equity is likely to be a fair bit less. Biggest issue may be what's already agreed re. equity-some seem to have the equity fixed at an amount judged at the start, others have agreed for a revaluation to be done.

Just when I was feeling there's light at the end of the tunnel, I got home to my flat today and had another letter from my trustee saying he is going to extend it for a further 12 months to realise his interest as Trustee in the equity of my property.
I'm assuming this is standard? Do I settle the equity at the moment and let the trust deed run for another 12 months and hope that's the end or could it be extended further?

I'll phone him tomorrow and make an appointment to discuss, but I just wanted your opinion on whether he's allowed to do this.

Thanks

Hi lorrs.

I think you'll find, if you can raise the lump sum, there will be no need for an extension,