Hello again trident227.

I think that your Trustee would want to be aware of any sale of the property and to confirm that they're happy for this to go ahead.

So long as no new debt is created though (if it were sold below the mortgage value) I very much doubt that they'd stand in your way.

If you stay in your current home your creditors might get a bit more money if equity develops.

If you sell and move into a rented home your creditors will get more money for sure as your costs will be decreasing and you'll be able to contribute more to the trust deed each month.

Hi trident227

You cannot sell the house if you are in a Trust Deed, it is your Trustee who would be selling it, and agree the sale etc. Any funds made would go directly to the Trustee, or your half share if the house is in joint names.
I cannot see it being a problem either way, and moving would certainly give them an increased payment every month as your expenditure is less. Staying in the house is unpredictable as TDA says - nobody knows what will happen to the housing market, it certainly isn't increasing too much at present.
I would decide which option you want to take, and then approach your Trustee with your preference. Look beyond the Trust Deed and see what option would suit you best once you are discharged.

Why do you wish to sell, trident227 - is it just to avoid the uncertainty as to the position at the end of the trust deed? Was any equity proposed to be paid to creditors as part of the initial proposals?

Hi Kevin/Shona, I have the £500 clause within the Trust Deed so any equity, however small, would be covered. A part of me thinks that paying a larger amount would be lessen the guilt with running up so much debt, whereas on the other hand I would greatly increase my disposable income (obviously paying more out to trustee) and not have Mortgage(s) to pay off each month.

ps, Thanks for the reply(s)

Hi again

This is always a hard decision, and one only you can make.
If you & the Trustee have agreed that paying £500 to purchase the Trustee's interest will freeze the equity, then you do not need to worry about any increased equity. Feeling guilty and wanting to increase the dividend to creditors is very commendable, but think carefully about what you want to do reagrding your house, and don't let guilt make the decision for you. You will have to live with this decision for a very long time.