Welcome to the trust deed forum WBN.

It isn't normal for a mortgage to be called in when someone starts a trust deed.

Does the letter specifically state that this is the case?

Would you mind also confirming what you mean by "using equity for the trust".

Hopefully this simply turns out to be the usual barrage of collections letters that get sent out when payments are initially missed after a trust deed is signed. Has your trustee said that there is any specific reason to worry about the RBS response?

Hi, the letter is from RBS Credit Management Services, its the first one from the bank. It lists the accounts I had and states the 'total amount due' which includes the mortgage. It doesn't mention the credit card I had with them.

The equity in the house is being used to build up the trust fund. I pay a monthly amount to the Trustee/account. Sorry of my terminology is confusing.

I mailed my trustee tonight and will talk to them tomorrow when they see the letter. Just a bit concerned at this, first letter from the bank.

Hi WBN.

I very much doubt that you have anything to worry about; hopefully your trust deed firm will confirm that reassurance tomorrow.

Hi, thanks for the response. I hope so too.

TDA is correct, mortgages are not normally a problem. I am sure your trustee will be able to sort it out for you.

Might be that one bit of RBS isn't talking to the other?

Hi, thanks for the responses, most helpful. The Trustee said

"The letter will automatically list all accounts within the dept that is contacting you, and therefore provided your mortgage is repaid as previously discussed, there will be no issues"

It would seem that RBS have listed all the accounts regardless of status in terms secured and unsecured debt. The missing credit card total is administered by a different department apparently

Many thanks. I'm at the early stages of TD and have found this forum a great source of guidance and comfort over the past few months up to signing the TD.

Cheers.

Hi WBN,

I think it maybe worthwhile for peace of mind to check whether the RBS have "an all sums due clause" in their Standard Security, which may allow them to lump unsecured borrowings into the Total Secured against the property.

your Trustee should be able to contact the Bank to clarify that matter for you.

Chris

Hi Chris

I'm not sure what you mean here? I havent defaulted on any mortgage payment. Do you mean that they could call in the mortgage (£129k) or reposess the house against the £13k owed in loan,card and overdraft that are included in TD?

Hi again,

Found this on the forum from a year ago.

http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=1016

Explains it clearly for me and concerns me also. I have asked the Trustee to check for the avoidance of doubt.

Hi WBN.

I'm glad that you found that thread, I remembered it and was looking for it a little while ago.

If it's of any reassurance to you I cannot remember a thread on this forum ever where someone seeking to enter a trust deed had a problem with such an all sums due clause being used in the way that Chris describes.

Hopefully your Trustee will come back to you with some reassurance and clarification on the subject soon and it will not turn out to be an issue.

Hi WBN

I had a similar letter from RBS regarding my mortgage , I simple call to reassure them that i was able to meet my motgage payments as normal was all it took , they did say it would be moniterer , but not to worry 🙂 hope this helps

Thanks for posting your experience of that fedup58, it's really useful information.

Hi

The "all sums due" policy is not used very often. It seemed to be used far more about 12 years ago, but it can still apply. Any case I had years ago where the bank did enforce it, meant that the overdraft became secured, and basically it would not be written-off at the end of the Trust Deed. The bank often obtained Decree but did not enforce it. The Trustee then reduced the contribution to allow a minimum payment to be made towards the overdraft.I have not had any loans caught up in this policy. I think this is because they come under the Consumer Credit Act.