Hi FF36.

So there are no monthly contributions on your trust deed, as agreed at the start?

From memory of your previous posts I'm not sure that's the case, but am wanting to clarify what you mean by "equity only trust deed".

Yes there is, maybe I've understood it wrong then.

OK, so you have monthly payments and there is equity in your home.

What, if anything, was agreed about the equity at the start of your trust deed?

Yes i do. I thought i read something in my trust deed contract that if the equity covered my monthly contributions then that would be it. I googled 'equity only trust deed' but i'm still not sure.

Not sure if I'm allowed to put a link here...sorry if I'm not

(Link to page about lump sum protected trust deeds removed)

Hi FF36.

It's no problem, but we do ask members not to post links here for a few different reasons.

The key point for you in that article is that it's only available if you have no disposable income. To put it another way, if you can afford to make a monthly payment you'll have to irrespective of whether you can realise funds from an asset.

Why not check what it says about equity covering monthly contributions in your trust deed documentation FF36.

If you're right that might change the scenario a bit.

It may be right then...I didn't have enough disposable income to have a trust deed so I'm paying monthly contributions via a 3rd party.

Think this thread is a good warning for anybody thinking about a trust deed to not rush into anything. I didn't have a clue about trust deeds when I signed and therefore didn't know what questions to ask either. I was rushed into signing it before the 28th November deadline. I didn't shop around to find the best trustee...I think I've been very lucky that my trustee has done the best for me. Even if this equity issue isn't correct, the rest of the contributions will be fine and I'll just need to stick it out until the end. However it works out things are looking a lot more positive than last year and I can't wait to start afresh.

If I've understood you correctly, FF36, you have been deemed to be unable to afford a contribution, and the only funds being paid into your Trust deed are from a third party to buy out your trustee's interest in your equity. Is this right?

If so then you may be able to finish your Trust Deed once the equity has been paid in by selling the house. However, your Trustee might insist that you have to wait out the 4 years in case your circumstances improve meaning that you would then be able to afford to start paying an income contribution after all.

That is exactly right Kevin.

Just thinking, if your equity is paid in by selling the house then the most you should have to wait until discharge is 3 years from signing. 4 years income contributions are only necessary for Trust Deeds signed after November 2013.

That would be fantastic if that was the case.

Hi FF36.

Is selling the house something you want to do anyway, or is your main motivation to end your trust deed early?