Hello WIKIKEE,

Over the last couple of years it has become difficult for people in Trust Deeds to remortgage.

Hopefully Graeme, our resident mortgage expert, will be able to add his views soon.
It would be helpful for him to know how much you believe your home to be worth currently and also how much is owed on any mortgages or secured loans currently in place.

If there was equity in your home at the start of the Trust Deed the £500 sum is not relevant. It applies only when there is no equity (or the home is in negative equity) at the time of signing.

Hi, it is extremely difficult in the current climate to raise monies to settle a trust deed. However this may change by next year .I would suggest contacting the trustees about dealing with the £20,000 equity through monthly payments.

Hello WIKIKEE,

I think Graeme makes a really good point. Nobody knows how the mortgage market will develop over the coming months/years so it might be best to sit tight for now and monitor what happens.

As I am paying just over £ 100 per month at the moment and just about managing, increasing the payments to pay the £ 20,000 by this time next year is not an option. If I have no other option I guess I have to sit tight and hope the mortgage market improves. We owe about £98,000 on our mortgage at the moment, and I'd hope the property might be worth about £ 150-160,000 by now.

Hi WIKIKEE,

That kind of loan-to-value figure could give you a fighting chance when the time comes.

Hopefully we'll see steady improvement in mortgage lending conditions over the coming months.

Well its now time to try and raise the funds. I have an endowment policy which will be cashed in, however I will still need about £ 3-4,000 what will happen if I can't pay this. Someone has suggested that the Trustee might accept the £ 16,000 in full and final settlement knowing that I can't remortgage? Does anyone know if this is a possibility. I'd hate to think I've kept to my side of it, and cashed in the endowment but will still lose the house, I'd have been as well letting that happen 3 years ago.

Hi WIKIKEE

It may well be an opportunity to offer the £16k as full and final settlement, however I suspect the Trustee will extend the TD perod and all subsequent contributions will go towards the equity.

Mark

Hi Wikikee

If you only need to find a balance of £3/4k I think it's unlikely that the Trustee will force the sale of the house. It's worth asking if they will accept the £16k in full and final settlement, however as Mark states above the Trustee may well extend the Trust Deed period.

Julie

Wouldn't the proceeds from an endowment be regarded as a separate asset that would have to go to the trustee anyway, separate from the equity?

Sorry for being alarming if that's not the case.

Cheers,

DFW

Thank you for your help. Half the value of the endowment was included in the equity figure to be repaid at the outset, the total value of this will be approximately £ 15-16,000 which will all be paid to them so that will leave an outstanding amount of £ 3-4,000 (I need to get up-to-date figures) if they won't accept the £ 16,000 then perhaps extending the TD for a year and increasing the contributions as we won't be paying the endowment premiums at that time might be something we can do. Thanks DFW the endowment was included originally so the amount to be repaid includes what was my half of the endowment. Does anyone know if they ever accept a reduced settlement? I'd prefer not to extend it obviously but if that's the only other option then fair enough.

Hi Wikikee

Sometimes it's more cost effective to accept a reduced settlement than to extend the case. Your Trustee may wish to put the proposal to your creditors and if they don't object your TD could be brought to a close. Every Trustee takes a different view on these situations however.

Let us know how you get on.

Julie

Hi
Im in a very similar situation- the TD is about to end in May and I expected to remortgage to release the equity of 23k as per the TD agreement. Even although the BANK SAID WE WERE'GOOD CUSTOMERS' they turned us down saying NO LENDER would allow us to remortgage to settle a TD. The house was revalued at 130k by the TD( a 20k drop from the start of the TD)with 117k outstanding on the mortagage. Therefore TD are looking for equity of 13k

Mac

Hi Mac.

Did you manage to meet with (or talk to) your trust deed company as yet?

Hi There

Im putting together a proposal Ive saved up for my own chartered surveyor to challenge the new valuation of 130k- houses are just not selling at that price here and those on the market are in vg condition- ours needs repainted, new carpets- the lot

The 13k equity would be reduced by about 4k for fees and so on so the creditors would get about 9k but that may be in about 3 years time ! I doubt they will want to wait that time, to sell quickly we have been advised by an estate agent to go in at offers around about 123k - that leaves 6k equity less fees is 2k equity

My family although cant give me a lump sum can contribute £200 extra a month so I could pay £500 a month- I could have a lump sum of 3k in 6months

does this seem feasiBLE or would creditors just dismiss this? Im hoping to get my letter in next week
to the TD
Thanks
Mac