Hi hardup

It would depend on the level of contribution you think you would be able to afford, also any equity in the house would require to be taken into account.

Student loans are excluded from Trust Deeds and all income and expenditure would be taken into account when calculating the contribution.

Hope this helps.

Mark

thanks for the advice
we realistically think we can afford between 300-400 but still need to go through it as it could be more. My husband hasnt decided whether to take a part time job (in his current employment as those jobs are secure) and study. If he did though would this not be looked at unfavourably by lenders just before a trust deed? They may not realise it makes no difference to our contributions.

I have a few more questions if you can help:

1.can we keep our house and somehow realise the equity through the monthly payments or at the end? (I will be fully qualified by then and hopefully have higher earning potential)
2. we have a car on hire purchase where we pay mthly pymnts of ?ú144 and at the end of the term we can send it back or make a lump sum payment. can we keep this? (valued roughly at 7k)
3.my 19 year old son works part time (very low wage)and is about to become a full time student - will any of his earnings be taken into account? will he be affected by a trust deed? (I currently support him but receive no money or help and do not get 'digs' from him)
thanks

Hi hardup

in answer to your questions (hopefully)

1. The big factor is the amount of equity. You mentioned ?ú20k. In all cases the IP will need to get a Trust Deed valuation carried out and this may come in at a lesser figure than similar properties in an offers over basis. It may be best to get this done beforehand to assess exactly what figure is needed.

2. Re the car, the option is yours.

3. The Trust Deed would not affect your son and if he makes no contribution from his income, then it can't be added or included. Howvever there may be issues with payments to 'support' him depending on the amount.

Mark

Hi Mark

We are trying to look at all options to get out of this mess but the house is obviously our biggest concern.
I contacted a trust deed firm last week but felt a bit uneasy that I was being told I could keep the house and the car over the one phonecall.I told him at the most there was 20k equity.
I gave him figures of debt - 60k- and income/expenditure etc and he came up with a figure of 385 joint monthly for 3 years or 485 joint monthly for 4 years to pay the trust deed. However he said we didnt at this time have that affordability and to come back to him when we 'increased' this. Since he mentioned things like mobile phone bill contracts to factor in among other things, I was a bit suprised as I told him we didnt have those. He said our affordability at this point was only ?ú160.

Anyway sorry for the long story but I think what you are saying is until we get a valuation we wont know if we can keep our house or not. Im concerned I pay out for that to then be told the affordability isnt there to pay a trust deed every month.
We dont have the money for a valuation at this point so will have to wait until we get that money from somewhere.
I have seen horor stories on this forum of people being asked for equity from their house at the end of the trust deed and not being able to remortgage or get that money in any way which could mean loosing the home they fought to keep in the first place.

thanks
Hardup

Can I ask a quick question with reference to the student loans? I started my trust deed about 2.5 years ago and at the time I had student loans from when I was a student, (1994 to 1997). At the start of the trust deed I was told that these loans wouldn't be included, then half way through the deed I was told that they would be.

Should I be concerned that they are not in fact included?

Hello miss hardup,

It sounds as though the income/expenditure was handled incorrectly; expenditure that does not exist should never have been included.

The statement that all would be OK with your home is a bit scary as well; as Mark has stated if there is equity at the start of the Trust Deed it will need to be dealt with at some point.

Valuations in a Trust Deed tend to be lower than the sort of valuation that an estate agent might provide to try to get your business.

One way to get some kind of guide now might be to contact a local estate agent and ask them to provide a valuation for a "quick sale". This type of valuation may be more in line with that used in a Trust Deed. It should also cost you nothing.

Getting a more formal valuation before signing a Trust Deed might be a good idea once it is affordable. If you decide to do that it might be worth selecting a Trust Deed company first and asking them who they use for valuations. That way you could obtain a valuation that would be used by the Trust Deed company as well so there is no danger of a different figure coming back to you if they instruct another valuation after you have signed the Trust Deed.

Hi Wull,

Hopefully one of the experts can soon confirm what the position should be regarding your student loan. The timings are important.

Have you had anything in writing from your Trust Deed company confirming whether or not it is included?

Hi misshardup

the subject of property is the single biggest issue I have found, however if dealt with properly, it can be easily resolved.

Your comment on the company promising everything would ok seems to be the way of things and as I always say, have a meeting and get these things confirmed before signing anything.

Taking account of the level of debt, I suspect you need to do something before one of the creditors does and that takes an element of control away from you. My advice would be to arrange a meeting and get the valuation done before doing anything. As Trust Deed Assistant says, it normally comes in lower, so may not actually be the issue you think. Once this is done, you can then plan a way forward and at least be safe in the knowledge that there is a process in place which will safeguard various matters.

I hope this helps.

Mark

Hi Wull

from memory they were excluded in April 2008, you you should be ok.

Mark

Hi Mark and Trust Deed Assistant
thankyou for the advice
It has made me realise my head is in the sand and I need to get moving asap to get this house valued and get to know which option is right for us i.e trust deed
will be in touch
miss hardup