Hi aber87
I changed my mortgage deal with abs no fuss at all, if you are staying with the same lender then Im sure there is no requirement for a credit check, it's not as if they can tell you to settle your mortgage and move on, your a customer and as such they have a responsibility to transfare you to a better deal if you are eligible and request it.

Meant to say, if you get a really good deal, like something substantial from your present monthly payments, be careful that it doesn't impact on your trust deed arrangement with your trustee, as it would obviously reduce you outgoings leaving more for the dividend pot, maybe the experts can come in with a more accurate take on this!!!!

Thanks littlemo. I don't mind paying anything I save towards my trust deed. I would still benefit from it once my TD is complete.

Hi aber87.

In all the time we've operated this forum I cannot remember seeing mention of a mortgage lender calling in a loan because someone entered a trust deed.

This applies to all mortgage lenders, not just the one that you're with.

If you don't move to a new deal (or one isn't made available to you) I'd expect that you'd be moved to the standard variable rate.

Cheers TDA.

I did think that if mortgage lenders took this approach the TD legislation would be useless for any homeowners and would have to be amended in some way.

Hi aber87.

I guess at the heart of this is why, commercially or morally, a mortgage lender would choose to call in a loan from a borrower who was properly paying their mortgage.

Also, how would they justify to their regulator that they were treating a customer fairly if they took action up to and including repossession where there were no arrears on the account?

Hi Aber87

I understand your dilemma. My bank conditions/terms changed to say if someone is in a Trust Deed they reserve the right to close the account, or similar. I did not let on I had it and it operates in credit (however small).

My mortgage also ran out just at the end of the Trust Deed. I did not seek a different deal - I let it fall to the basic rate - for fear of drawing attention to my credit rating. I know if I apply for another mortgage deal they will do a credit check and offer me a penalised rate (whether I am operating the account properly or not).
It happened to my friend exactly like that.

I actually called the building society and had a 'theoretical conversation' about the situation. They would not answer a general question without me giving my name and address, so they could check my file.

I would proceed warily, even if the situation 'should be' different and more fair.

I'm not at all sure every mortgage lender will credit check simply to switch to a new deal from an old one.

If there's no additional lending then there is no extra risk to the lender.

In fact switching a customer to a decent deal might be less risky for the lender.

Having said all of that, I'd imagine practice will differ between firms.

Hi I am looking for advice please. I am currently holding off on signing a trust deed as my fixed mortgage rate is due to end in 2 months. I have just fixed a new rate with the same mortgage provider to start once my current rate ends. My worry is if I enter into a trust deed now will this affect/cancel my new mortgage rate. If I were to be placed on a variable rate my payments would increase by approximately £400 extra a month. 
It also says in the small print of the mortgage agreement that circumstances where they would request the mortgage to be paid in full would be if a trust deed was entered. Can someone please offer some advice 

Hi IMC2345

There is a difference between what can technically happen and what usually happens in practice.  Whilst the terms and conditions of your mortgage will probably mean that your mortgage lender can change your product or even call up your mortgage if you enter into an insolvency procedure such as a Trust Deed, in reality I cannot remember ever seeing this happen to anyone.