Forgot to add i work full time ?ú18639

per month i pay

274 mortgage
14 life insurance
25 building and contents
80 council tax
30 fone
30 bus to work

any help would be appreciated

Hi Katrina

It depends on 2 thing. What could you reasonably afford by way of monthly payments and is there any equity in the house.

This will give me a guide on options.

Mark

Well when i bought the house there was a home report that valued it at 60000, sorry i dont really know that much about equity and things.

I would resonably be able to afford around 200 a month 🙁

thanks for your help.

Hi Katrina

There's a couple of things here. The Home Report is likely to come in at a higher figure than a Trust Deed valuation. Also as the mortgage is fairly new, so I assume there will be early settlement penalties on the mortgage. In summary of the house position, it is likely that the property will value less than the ?ú60k and the mortgage is likely to be higher than ?ú50k once the early settlement penalties are taken into account.

The option therefore seem to be DAS Scheme whereby you pay the debt in full over a longer period, 8 years or possibly a Trust Deed which would allow an element of debt write off.

Mark

thanks for your help and quick replies.

what would be the best thing i could do next?

Hi Katrina

Best advice would be to sit down with someone, look at ALL the options, sign nothing and then make a decision once you have all the facts are are comfortable to proceed.

Hope this helps

Mark

Hi Katrina and welcome to the site.
As i was in the same position as you at the start of the year with many worries,the best advice i can give to you is to use one of the experts from this site.They have helped many people in our position. Mark carried out all my TD work for me which lifted all worries and pressure off.He can visit your home and discuss (face to face with you) all your options with you with no up front fees. Best of luck and keep us upto date how you get on.

thanks so much for your help ....... i think i need to sit down with someone.

I have one more question ....... if i opted for a trust deed what happens with my house?

I dont understand that bit .... i have read people talking about remortgaging? im confused!

thanks again

Hello katrina81,

If a person in a protected trust deed has a significant asset, such as equity in their home, they will be expected to release the value of that asset into the protected trust deed.

Up until a couple of years ago most people did that by remortgaging towards the end of the trust deed.

As things stand today that's not a viable option as mortgage lenders are very unlikely to lend additional funds to anyone in a trust deed.

Therefore, anybody who has equity in their home needs to have a plan to deal with that equity prior to signing the trust deed.

Some people are lucky enough to have friends or family who can pay a lump sum into the trust deed that reflects the value of the equity.

Some people, depending on the amount of equity that they have, may simply be able to make a few additional monthly payments into the trust deed at the end of the arrangement to cover the value of the equity.

If these sorts of options are not available a trust deed may not be an appropriate option for some people as it may pose a risk to their home (assuming that their main priority is to keep their current home). Other options, such as the Debt Arrangement Scheme or debt management plans, may be more suitable.