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Scottish Trust Deed Forum
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Topic starter
19/01/2019 3:46 pm
I need some help and advise (or a magic wand).
I am almost 2 years into my TD and have made some extra payments along the way.
I had to reduce my hours at work and move my son and I into my mums house to look after her. I did not miss any payments it was just that things were tight and a financial advisor suggested a TD. Things were going fine until June, never missed a payment and paid extra. My mum passed away in June and as an only child I have been left the house. Not just any house but the home that my mum grew up in as did I and for the most part my son too.
Obviously my IP sees the house as a windfall and want settlement in full.
If I sell then I am making myself and my son homeless, I can not afford private rent and council housing in my area is a no go.
I can afford a re-mortgage or secured loan but can not get one whilst in a TD.
The last thing I want to do is lose this house, I am now on anti-depressants because of the whole situation.
There has to be some solution that I am missing?
My IP is not approachable in anyway shape or form which does not help.
19/01/2019 11:18 pm
I’m sorry for your loss and the predicament you find yourself in. I’m sure one of the debt advisors will be best placed to lend their advice to you when they see your post. Hope all works out for you and your son.
20/01/2019 1:37 pm
Welcome to the forum Harky.
I’m so sorry, but I can’t give you news that will bring you immediate comfort. Your trustee has no option other than to use your inheritance somehow to deal with your debts.
How much is your home worth do you think?
How much did you owe when your trust deed began?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
20/01/2019 3:43 pm
Hi,
My home is worth 110-120k and is mortgage free. From what I remember the debt was roughly 28k and was brought down to 11k.
21/01/2019 8:51 am
Hi Harky,
I'm afraid that the sum that your trustee will be looking for is likely to be significant. It will be the full amount owed at the start of the trust deed (£28k) plus interest plus their own fees and costs.
Any sum that you have already paid over will be deducted from the amount above.
There are a couple of secured lenders operating in the market to bring IVAs to an end. An IVA is quite similar to a trust deed and is used elsewhere in the UK. I don't know whether they operate in Scotland and I don't know whether they can help if there is no mortgage in place. I do know that the interest rates are very high, so even if a loan like this could be sourced the repayment amount might not be affordable.
Another option might be if someone else could contribute the sum that the trustee requires. This could, for example, be a family member who you then repay over the course of time.
If none of these options will work, you may have to face up to selling the home in the future, though I know and understand why this would be an absolute last resort. I guess the only positive is that you would have a significant sum left over which would provide you with financial security for some time.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
