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Scottish Trust Deed Forum
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Topic starter
25/01/2016 7:20 pm
My 4 year trust deed is due to finish in May.
However, I have 6 months payments to make beyond that for equity.
I recently saw that someone had paid their equity using a mortgage payment break. Thought this was a great idea.
So asked my company (Creditfix - transfer from Philip Gill)
I'm not actually sure if I would be able to do this (haven't asked my lender) but wondered why they would simply say no when I would have completed my 4 years of payments.
Thanks for any advice
26/01/2016 9:15 am
Hello ann910.
Did they say no when you asked them?
I wouldn't push too hard on this until you've spoken to your mortgage lender - unless the terms of your mortgage specifically make provision for a payment break it may be quite unlikely that they'd agree to one of this length.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
26/01/2016 9:21 am
Hi ann910,
I do know some mortgage providers will give you a payment break but this has only been for 1 month. I'm not sure that your mortgage provider would give you a 6 months payment break.
Until you have completed your agreed payments i.e. the 36 payments and then revert to paying equity any extra funds you are able to pay in i.e. from a payment break could be classed as additional funds and not be used towards the equity to reduce the term.
Effectively if you agreed to make 36 payments of £200 you need to pay this before you can then use any extra money you have to pay the equity off.
I think it's something which you would need to receive confirmation from your Trustee that you could obtain a payment break from your mortgage and these funds could specifically be used to pay the equity in your property to save a further 6 months payments.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
26/01/2016 9:48 pm
Thanks for your replies.
I finish my trust deed (4 years ) in May. Last payment.
I asked creditfix if I would be able to take a payment break after that (I was hoping a month or two at most) to help pay the equity.
The reply was short with no explanation. Just that they would not be able to agree to it.
I havent asked my lender yet at all. I would have done that if my reply was more positive
Thanks
Topic starter
26/01/2016 9:51 pm
Hi TDA
yes, they said no when I asked.
I'm almost certain my mortgage does allow this (though there may be conditions attached which I may or may not meet).
26/01/2016 10:23 pm
I think the issue may be that if you stop paying your mortgage then the equity in your home will decrease ann910 (due to interest increasing the balance owed)
If you did that and didn't pay over the savings the interests of your creditors might be jeopardised.
It's just speculation though - you'd need to ask your trustee to provide their reason.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
