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Scottish Trust Deed Forum
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Topic starter
08/01/2011 12:57 pm
Mark,
I have been in a Protected Trust Deed for over two years now with a completion date of October this year, with payments being met each month (and have increased whenever I have had a pay rise or annual review). As I am keen to get back on track with my finances plus the fact that I recently married (did not know my wife at time of entering the Trust Deed and therefore has no association with my debts) and we wish to buy a new home at the start of next year, it would be greatly appreciated if you could kindly answer the following questions posed below:
1. There was no equity in my mortgage at the time of entering into the Trust Deed but I have been paying interest only on my mortgage to pay back as much as I can to the Trustee / Creditors. With this in mind, what happens if my mortgage equity at time of Trust Deed completion is circa ?ú6,500 (based on current website property valuation - which is not 100% accurate and my mortgage "balance"?) and how accurate is the equity estimate at time of Trust Deed completion given that I would not be selling my property at that point in time?
2. What advice can you please give to ensure that I get my credit rating back to a respectable level and to minimise the level of interest on a new mortgage (circa 4 months after Trust Deed has ended)?
3. Are there any "hidden" costs during the completion of a Trust Deed that I need to be made aware of?
4. Given the fact that I have made all of my payments in a timely manner, with increases made wherever possible plus have been as transparent as possible, what are the chances that the Trustee / Creditors "extend" my Trust Deed period? Please note that the Trust Deed duration was stated as being 3 years when I entered into it.
5. Does the Trustee currently "own" my property until I have been "released" from the Trust Deed?
Your assistance would be greatly appreciated.
Regards
08/01/2011 2:26 pm
Hi disposable income
I've undernoted the points as follows:
1. The equity position depends on the agreement at the start of the Trust Deed. Are you aware if the Trustee will revalue the house at the end of the Trust Deed or if the agreement is to calculate at the start. In my cases, equity is assessed at the start and if there is no equity, that position will remain.
2. None unfortunately. Credit files are something outwith my area of expertise, however I suspect getting a mortgage will depend on joint income and the deposit. These I suspect will be the 2 main factors.
3. No. The Trust Deed proposal at the start is what you need to adhhere to. If its 36 x Contribution, then thats what you will pay.
4. None. The agreement is for 3 years/36 payments.
5. I could be here all day on this point. Your Trustee is unlikely to record title to the property to 'own' it as it were. He will likely do a Form 13 in the Register of Inhibitions and Adjudications however which has the effect of stopping you selling it.
I hope the above helps. My advice would be to clarify the position with the house directly with your Trustee. Hopefully its good news.
Regards
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/01/2011 4:53 pm
Mark,
Thank you for your prompt and comprehensive reply which is of benefit to me. It's appreciated.
I'm assuming that your response to point 5 is only valid whilst the Trust Deed is active i.e. during the 36 months. Please confirm. Thanks.
Appreciate your assistance.
Regards
08/01/2011 6:35 pm
Hi Disposableincomeo
sorry had to go out. Generally the trustee will have a hold until the equity matter is satisfied.
Speak to your trustee and let me know the position and hopefully I can guide you further.
Regards
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
08/01/2011 8:35 pm
Thanks Mark.
I will contact my trustee and then inform you of the outcome.
You've been of great assistance. It's appreciated.
Regards
