Hi tomas80.

I presume staying in your home is a priority?

If it is you'll need to come to an arrangement with your mortgage lender before you sign a trust deed.

You will not know how much your mortgage payment is going to be until this is done, and therefore you will not know how much you can afford to pay into a trust deed.

Signing a trust deed before you make a mortgage arrangement risks you being left in a position where you are unable to repay one of them in the future.

The cars really need some thought as well. If you cannot afford to replace the cars now this is highly unlikely to change during the course of your trust deed. You'll be asked to pay over your disposable income, so you will not have much spare cash that you can save to later replace the cars.

Like the mortgage, if cars are essential for you to make a living you need a concrete plan in place before a trust deed can be signed (or at least I think it would be sensible to do it this way around).

The car problem moight be a difficult one to resolve. As trust deed assistant says, you will struggle to get credit whilst in a trust deed and it is unlikely that you will be able to save a significant amount.

You mention the possibility of a family member loaning you money to finish your trust deed early. It may be that you might need this family member's help to finance the replacement of your car(s) instead.

hi thanks again for reply

i will work mortgage case first

car option is not that important now maybe they even survive trust deed in case if not i will be looking for some solution

but how is work from legal point of view, if cars are my assest and i need to scrap or sell them etc what happend then coz as assest they have some value but coz they are use for work value going down rapidly so how it works?

Hi tomas80.

The first key point is do you have a reasonable need for the cars. If the answer is yes then you should be able to keep them.

The second key point is are they worth more than £3000? If they are you may need to make an additional contribution based upon their value to your trust deed.

The third key point is which valuation point will be used. Will it be what the cars are worth when you sign the trust deed, or will it be what they're worth when the trust deed is coming to an end?

Just like equity in your home, these are all questions to ask prior to signing a trust deed (and get the details in writing so everything is clear for all involved).

If you have to scrap or sell the cars you'll probably need to speak to your trustee. They may well be happy to let you keep the money in order to help replace the car (if that's what you're doing) but again I'd want written confirmation in advance on this matter given that you require vehicles to make a living.

Hi Tomas80, you still sound very unsure. That being the case, you should not be signing anything. As the others have said, make sure your house is valued and the equity sorted out first, and the terms re your house in writing. Again , the cars need to be discussed in depth. It is not cars upto a value of £3,000 that are exempt, it is one car upto a value of £3,000. Therefore, you have to discuss with the trustee how the other cars will be treated. If they are needing replaced, the trustee would normally allow the funds from the sale to go towards the purchase of the new vehicle. You have too many uncertains to rush into anything. If it is done right first time, you trust deed has a very good chance of success , so take your time.