Hello 36monthsareover and welcome to the trust deed forum.

In general the Trustee will need to raise all of the equity in your home if you are the only owner, or half of the equity if the property is jointly owned.

It sounds as though they will seek to calculate this figure based upon a current valuation and your current mortgage balance.

The "13p in the £" suggestion for what it would take for a trust deed to become protected is a bit of a red herring.
When your trust deed proposal was created it would have been based upon what you happened to be expected to be able to pay based upon your financial position at the time. If that meant that creditors could expect to receive 13p in the £ it may well have been acceptable to them.

Once you have signed the trust deed your Trustee has a duty to collect what you can actually afford to pay towards the debts each month (which may improve with a pay increase, a promotion or a windfall of some sort for example), and also your share of the equity in your property (and any other significant assets).

Some members have found that their Trustee has been prepared to compromise in this area where the compromise is in the best interests of the creditors (for example, where the significant costs of the forced sale of a property are avoided).

We're not currently aware of mortgage lenders offering additional lending to persons currently in a trust deed, and I think it would be very hard to source a large unsecured loan while in a trust deed also.

Where there is equity in a property most people will look to either secure the funds from a third party (family or friends for example) or to make extra monthly contributions to repay the amount (where this can be done within a reasonable period).

It may be difficult for you to make plans in this respect currently until the actual figures are known. Do you expect for there to be much equity in the property (or your share of it)?

Thanks for the reply, I am the mortgage account holder and the trust deed solely in my name, i do expect the figure to be approx £25k Could i get a loan with my dad countersigning?

I'm afraid I don't know 36monthsareover as the decision would be up to any individual lender. There is no restriction on the part of your trust deed itself from doing this.

On balance I suspect it's going to be hard to persuade a lender to advance such a significant sum to you while you are still in a trust deed. If your dad is prepared to countersign such a loan, would he be prepared to take the the loan out himself? He's ultimately responsible for repayment of the loan either way.

I will see what the sum is and take it from there, do yo know of any lenders that have prooved to be helpful in these situations?

The unfortunate answer at the current time is that I don't.

In the past year I can only remember one poster here in the forum stating that she had been able to find a secured lender that was prepared to offer an additional sum while she was in a trust deed. I don't think that the lender was named and I'm not sure whether the loan ever actually went through.

If you took this route, does your dad have security (such as a home with a relatively low loan-to-value mortgage) or would he be looking to borrow on an unsecured basis?

Thanks my dad is retired an owns his home approx value £200k, he knows about my TD and will offer some help, not sure how much at this time, you mentioned that a trustee will accept a sum in favour of the creditors best interests, so if a valuation resulted in £25k, would it be reasonable to assume that the time and costs for eviction etc would mean that £18k in the hip is better than £25 in the bush ( or whatever that saying is? lol)

The Trustee will be looking to raise the full sum 36monthsareover.

It's for you to make a commercial case to them if you cannot raise the full amount due for the equity. If, for example, your dad was only prepared to offer £18000 (and then only on condition that you were discharged from your trust deed after it was paid) you'd have something concrete to put forwards.

Whether or not your Trustee is prepared to accept that is a matter for them.

We have heard from some posters that have been able to reach a compromise with their Trustee in similar situations when they have had something concrete and significant to offer that could be seen as being the best deal available for the creditors.

Thanks for all your advice.regards

Hi 36monthsareover

I have to agree with TDA - I do not know of anyone who is managing to remortgage whilst in a Trust Deed, the markets are just too strict just now. If your dad will help you, then a lower amount may well be accepted. After all, if the house went on the market can the Trustee be sure what it will be sold for, or how long it would take to sell? the Trustee's obligation is to raise as much funds as possible for the creditors, and I think a lot of them would rather have your £18k in their pocket now, than maybe £22000 (after selling costs etc)in 6 months or a years time. Give it your best shot!

I'd tend to agree with the others, trustees really don't want to be raising legal actions to evict families from their homes if they can avoid it, so a reasonable offer has a good chance of success.

The other scheme you could bear in mind would be the Scotish Government's mortgage to rent scheme. Is a bit drastic as you would no longer own your home, but at least you would be able to carry on living there as tenants so worth a look if all else fails.

Kevin is right, the Mortgage to Rent Scheme may be an option if all else fails, but to enter the Scheme your house has to be below a certain value, based on where you live, and the number of rooms in the house. If you decide to look at this option, you can only access it through a trained Money Adviser- usually Local Authority or CAB.