Hi Eeastender
This is a great site where you'll get lots of support.

One of the experts will no doubt be along soon, however from reading on here & from my own research before we took our TD, I would think that the fact you have so much equity in your home may be a stumbling block with a TD, as you would have to rlease the equity at the end of your trust deed.

As I say I'm no expert & I'm sure one of the good people on here can give you much more sound advice.

Good luck & you've done the hardest bit by admitting you're struggling !!

boys1211

Thanks boys1211
Can I ask why I'd need to release equity at the end?
Would that involve a remortgage?

Cheers

Again I'm no expert but I do know that you need to declare any assets at the start which obviously would include your equity, so in theory yes you would have to remortgae but unfortunately because of the TD you will be highly unlikely to get a remortgage as your credit rating will take a severe battering.

Have you read the info on here?? Tells you lots of detail about TDs.

There may be other more suitable solutions for you, you could look at debt arrangement scheme (DAS) which if I'm right doesn't affect your equity.

Someone qualified will be along shortly I'm sure !!

Thanks. Not had a proper look around yet.
If I could free the equity and pay off the majority of what I owe I wouldn't hesitate but with the state of the mortgage market it's unlikely.
Cheers again

Hi Eeastender and welcome.

If you own significant assets (like equity in a home) they have to be "dealt with" one way or another in trust deeds and bankruptcy. Basically that means releasing the value to help repay creditors.

At the current time that's impossible via a remortgage for most people as lenders are very risk averse.

Accordingly many people with lots of equity in their homes will conclude that a trust deed isn't appropriate for them.

However, valuations used for trust deeds tend to come in lower than many people expect. This reflects the reality of a pretty dismal housing market at the moment.

There are firms that will do such a valuation for you before starting a trust deed so that you can better clarify your position and make an informed choice.

You may want to have a read of our Debt Arrangement Scheme page as this may also be an option for you to consider.

Thanks I'll do that

Hi Eeastender

I think the key point in this will be the valuation of the property.

Trust Deed valuations certainly will be lower than a normal estate agent valuation, which may reduce the equity figure. Do you know if there are any early settlement penalties on your mortgage?

If there is sufficient equity, then DAS may be the route to follow.

Mark

Im currently looking for a new mortgage. My deal with the Halifax is up and I'm now on there variable rate product.
Even thought about an interest only mortgage which would give me reduced payments that I could put into paying credit cards.

I'll need to get the house valued.? Paid £95k in feb 2010 but it has dropped since then.
I reckon to around £86/87k with £74k outstanding on mortgage.
What should my next step be?
Cheers

Hi Eeastender

Best advice would be to speak with someone and discuss the options available. Most firms will be able to get a valuation of the property before you do anything, this at least would allow you to look at the TD or DAS and see what best suits.

Mark

Thanks
It's amazing how much of a relief it is to be doing something constructive instead of just worrying.

Advisors hear that from a lot of people Eeastender.

Reaching out for advice for the first time often seems to be the hardest step with things quickly getting easier from there.

I wish I'd done it 6 months.

Try site 'ourproperty' -can't post a link but you can google, its a co.uk ending. Enter your postcode and you will get a list of all sales in your street over last 2 years, comparing the ones you know are similar to yours, you may find equity is less. Then the trustee will get a valuation possibly returned as lower due to the assumption of a really quick sale.