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Equity Years

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(@smit0310)
Active Member
Joined: 5 years ago
Posts: 6
Topic starter  

Hello, I am now in year 5 - only 18 months to go. I am currently paying the monthly amount due to the the equity that I had in my home when I entered the trust deed. I just wondered if I had a change in circumstances and had opportunity for a better job that paid more. Would my payments in these final years possibly change even though these are the payments due to my equity or do these ones just stay the same for year 5 & 6? 
many thanks 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Do you have a copy of the original Trust Deed paperwork, smit0310?  If so, you should check what the Form 1B says as this is the formal agreement regarding what has to be paid in lieu of the equity in your home.  It is signed at the same time as you sign the Trust Deed normally and cannot be amended afterwards.

The amount requiring to be paid has to be stated on this form, so it follows that this should be a fixed amount that cannot change - it certainly is for any trust deeds I set up.  Therefore if you can afford to pay more then it should be possible to end the Trust Deed more quickly. 

Having said that, perhaps other firms have some clever form of wording they insert onto these forms to ensure that changes in circumstances are taken into account for equity payments.  I am not aware of this being the case, but would recommend you find the Form 1B you signed to be 100% sure. Your trustee firm should be able to provide you with a copy if you can't find it.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@smit0310)
Active Member
Joined: 5 years ago
Posts: 6
Topic starter  

@kevin-mapstone thank you so much for your advice. I have checked form 1b and it gives me a specific amount that I need to pay by September 2025 for the equity on my property. So do you think if I can pay this off earlier then I could do that? And also I wont be subject to an annual review this year so if I do earn more they can’t ask me for more contribution? Thanks


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

That's right.  If you can find the money from somewhere then you could pay off the amount needed and the Trust Deed should be able to be closed down.

The requirement to account for your income/outgoings and pay whatever you can reasonably afford should end after the first 4 years.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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