Welcome to the forum Lanarklad.

These days it's very rare that anyone can raise additional finance against their home while subject to a trust deed.

The usual options to consider are:

1 - Are you lucky enough to have friends or family that could step in to help you?

2 - Will your trustee agree to an extension of the trust deed to allow this sum to be paid over in continued monthly contributions?

Hi lanarklad

As detailed above, it will be very difficult to obtain finance, especially from your current lender. The only option would appear to be an extension which as you say will be difficult as it has has already been extended.

The only hope I suspect is that the Trustee is unlkely to look to sell the property taking account of the low equity figure.

Mark

Hi, thanks to both of you for taking time to reply. I will contact the trustee.

Rgds.

Good luck with that Lanarklad.

I hope that you get a positive response.

Hi Lanarklad,

What was the reason for your Trust Deed being extended from 3 years to 5 years and how much are you paying per month to your Trust Deed at the moment?

Normally a Trust Deed can be extended to ingather any available equity as long as this doesn't run on for an excessive period of time. I think most firms try to work towards a total period of 5 years for everything to be concluded and ingathered in a Trust Deed. As Mark has said this could be difficult if your Trust Deed has already been extended to 5 years previously.

It might be possible for your Trust Deed to be extended again but this is something you will need to clarify with your Trustee. Let us know how you get on.

UPDATE 27 JAN 2016.

Hi, Just an update on how we are getting on. I contacted the Trustee after my first post, and they agreed to let us pay off the £3500 shortfall over 6 months. They were really ok about it, we hadn't missed any payments to our TD in the 5 years. We finished paying our TD in Sep '15.

During our time in the TD we managed our accounts really well, using a spreadsheet APP on my iPhone, and are continuing to do so.

It really worked for me & my wife, I can't imagine going back to our lifestyle before, with returned direct debits & credit cards maxed out!

I got a vanquis credit card, which I was told would help my credit score, clearing the balance every month. They have just increased my limit from £500 to £1000.

This must have worked as I just managed to secure car finance as my wife's car was a wreck! We were refused finance from the dealership initially, but they came back with an offer from another lender, with paying an extra £25 per month as the APR is higher.

I will now need to read the forum on what I have to do, to improve my credit score. I have read that I have to contact creditors? Any pointers would be great.

Thanks again

Hello Lanarklad.

I'm really pleased to hear that things have worked out so well to you. Hopefully others reading this who are considering a trust deed, or who are at an earlier stage in one already, will be reassured to see that things can steadily return to a better normal in the future.

There will only be a need to contact creditors if there's incorrect entries on your credit report. Have you had a look at it?

It's great to get these updates from people who have posted earlier in their Trust Deeds and have now come out the other side. Thanks for that Lanarklad.

Your credit rating will be improving if you are using credit responsibly, as it sounds like you are. Worth checking a copy of your file if you haven't already and see whether there is anything on there that you think shouldn't be.