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15/12/2016 11:47 am
Hi everyone! I'm new here so thanks for letting me join. I received a letter this morning from my Trust Deed managers saying I need to forward my latest mortgage statement and they will be arranging a valuation of my property. I am so worried about what this may mean for me. Can anyone give me some advice please? Some background information: my Husband and I both have a trust deed with the same company (Credit Fix) taken out at the same time. We are currently just past paying four years of a six year agreement. Our house did not have enough equity at the beginning but I am sure there will be equity now. What could we be made to do, also would they take into account that we just about manage to meet all our obligations including the trust deed so any mortgage increase would be impossible for us to find. Many thanks in advance.
15/12/2016 3:44 pm
Hi shendy and welcome to the forum.
Can I ask why your Trust Deed over 6 years? Normally Trust Deeds are over 4 years (since November 2013 – prior to this it was normally 3 years) but if there are assets a Trust Deed can be extended to ingather additional funds.
When you enter a Trust Deed the position with any assets should be established and agreed at the outset of the Trust Deed and then remain the same unless there is a change in circumstances or the client doesn’t co-operate.
Do you know if a valuation and settlement figure was obtained at the outset of your Trust Deeds and everything confirmed in writing?
It’s a little unusual for another valuation to be obtained mid-way through a Trust Deed but there may be reasonable explanation.
If you can share a little more information we can help with further advice.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
15/12/2016 8:03 pm
Hi David,
Thank you for your reply.
We were told at the outset that due to the amount of debt in relation to the affordable monthly payment we would need to pay over six instead of four years.
I actually called the company's helpline and was advised it is normal to get a review towards the end of your trust deed to see if any equity can be released to settle earlier. When I said but we have nearly two years left the response was that we still needed a review. We would need to send a MORTGAGE statement and then a valuation. Once equity was established we would be expected to apply for a reportage and when (if) it was refused we would need to provide evidence. Then dependent on the amount of equity, current income etc. They may extend the term by another two years making eight(the maximum allowed I was assured) and the amount could increase. No figures were able to be quoted but I was told I signed to agree to this at the outset.
Thanks
quote:
Originally posted by David Tannock
[br]Hi shendy and welcome to the forum.Can I ask why your Trust Deed over 6 years? Normally Trust Deeds are over 4 years (since November 2013 – prior to this it was normally 3 years) but if there are assets a Trust Deed can be extended to ingather additional funds.
When you enter a Trust Deed the position with any assets should be established and agreed at the outset of the Trust Deed and then remain the same unless there is a change in circumstances or the client doesn’t co-operate.
Do you know if a valuation and settlement figure was obtained at the outset of your Trust Deeds and everything confirmed in writing?
It’s a little unusual for another valuation to be obtained mid-way through a Trust Deed but there may be reasonable explanation.
If you can share a little more information we can help with further advice.
16/12/2016 8:40 am
Hi shendy,
Paying a Trust Deed longer because of affordability is a valid reason however paying it for a potential 8 years I don’t think is ideal. Do you know if any other alternatives were explained to you such as a Debt Arrangement Scheme or Sequestration?
The key here is what you agreed to at the start of the Trust Deed. This should set out exactly how long your Trust Deed should last, how much you should pay in and also the agreement in respect of the equity in your house.
I would ask them to post you out a copy of the original paperwork from the start of your Trust Deed to clarify what this confirms. Once you know that you can then take it from there.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
16/12/2016 10:05 am
Thanks David. I am going to look out the paperwork today and see exactly what was agreed.
quote:
Originally posted by David Tannock
[br]Hi shendy,Paying a Trust Deed longer because of affordability is a valid reason however paying it for a potential 8 years I don’t think is ideal. Do you know if any other alternatives were explained to you such as a Debt Arrangement Scheme or Sequestration?
The key here is what you agreed to at the start of the Trust Deed. This should set out exactly how long your Trust Deed should last, how much you should pay in and also the agreement in respect of the equity in your house.
I would ask them to post you out a copy of the original paperwork from the start of your Trust Deed to clarify what this confirms. Once you know that you can then take it from there.
