Hi johnd.

An increase in payments during a trust deed is common. It will occur when income increases and/or expenditure decreases leading to a situation where an increase trust deed payment is affordable.

Why are you thinking about handing back the keys to your home?

johnd, I'm fairly sure the NR 'top-up' loan will be unsecured, you might want to check that? If it is, it's possible it would have been included in your TD as a claim and your payments would have reduced to just the interest only amount for the mortgage.

There are no crystal balls but there don't seem to be any economic indicators for major change in the housing market and selling prices achieved. In some quarters it's expected to stay the same for ten years.[:0]
Again, that's really just one of the many viewpoints and no-one can state factually what's going to happen or when.

It was pretty evident to all from 5 yrs ago that we were not seeing a 'seasonal dip' and it was reasonably predictable that availability of lending and existence of equity were both greatly reduced across the board.[V]

has there been a change in your outgoings which makes the mortgage payments more difficult?
Is it more of a general worry over not making repayments against the large balance which has you thinking of handing back the keys?

Ok,I accept the increase in our td,if our mortgage increases,it Will dble,by 600pounds,which the purpose of the td was to have a clean slate,which is not going to happen,so still up to our eyes in it,neg equity by 30k,so were stuffed.

So you want to give up your home because it's in negative equity?

Or you want to give up your home because a repayment mortgage will be unaffordable for you?

Think it may be both TDA.

Paul

The shortfall would certainly be taken care of by the trust deed if you gave the property up, johnd. However, an extra £30k debt will mean that you other creditors will get less as a result, so you really need to speak to your trustee first as they might insist that you trust deed is extended to compensate.

Or the other option is to continue to pay interest-only on your mortgage and hope that the market eventually recovers sufficiently that you are no longer in a negative equity position. How long that might take is anybody's guess though.

I think you said the Northern Rock top-up was secured previously - have you double checked this? It may well be secured, but they do often tag on unsecured loans to mortgages, as RockBottomSolidBase suggests.

Not for the neg equity,unaffordable repayment,we already have a secured loan on the property,all the unsecured loans were taken up in the td,we will have to hope we can continue with a interest free payment,who knows.

I had a together loan from NR and the part referred to as the 'top up' was unsecured. Now we're in sequestration, we pay interest only on the mortgage part itself. I definitely couldn't switch to repayment basis now for same reasons as johnd but it's not attractive option to hand it back and pay £250 more for rent.

It's not a good option johnd but maybe the only one is as Kevin says, sit tight. Most lenders now want to lend on repayment basis and to see bigger deposits so it might mean limited choices regarding moving elsewhere.

After the pTD finishes, NR will happily accept overpayments if you choose to spend what you've been contributing in the pTD, that will reduce the balance - and the interest payments.

It is worth noting that for the first couple of years in a repayment mortgage the balance does not drop by more than a couple of pounds so unless you keep the same mortgage for 5yrs+ you just have bigger payments. If you keep your interest only mortgage, all overpayments will cut into the balance while you wait with everyone else for values to rise, your credit file cleaning up, lenders lending and equity returning to your property.

It's maybe not all as doom and gloom as it seems johnd.

Thanks rocksolidbase,that sounds good advice,thanks for that,certainly sounds better to do that and just hope we can stay on a interest free mortgage