Hi nevil99 and welcome to the trust deed forum.

I'm afraid that the availability of mortgages has declined so much over recent years that we're not aware of any mortgage lender that is prepared to lend additional funds to someone who is currently in a protected trust deed.

There are probably three options available to you:

1 - A third party (friend or family member?) steps in to pay the sum and the trust deed is closed.

2 - Sell the property; the surplus generated from the sale will bring the trust deed to an end.

3 - Agree to make additional monthly contributions in lieu of your commitment to deal with the equity in the house. This will extend the period of the trust deed.

I'm sorry that there is no easier or more convenient option that can be identified for you.

thankyou for the reply , yes thats about the options my trustee gave me ,option 1 and 2 are out of the question so only leaves me with number 3

is it still possible to move my mortgage when on a trust deed theres cheaper deals out there than the one im on at the moment ?

Hi nevil99.

In common with many other sections of the mortgage market, there has been a shift away from lender willingness to provide finance to persons in trust deeds.

I therefore doubt that you'll be able to find a better value mortgage I'm afraid. Until the trust deed comes to an end a cheaper mortgage would not benefit you anyway, as any saving would serve to increase your disposable income and therefore the contribution that needs to be paid into the trust deed.

thankyou ..can i ask about the 12.5k thats due from my property value ,as my property was valued at the start of my trust deed giving 12.5k equity , my trustee is saying im due that sum ,however that sum was the value 3 years ago when property was higher ,what would happen if i got anouther survey done on the property in question and the value givin , was less than the 3 years ago price , would the lower price be taken ?

Hi nevil99.

There is no harm whatsoever in speaking to your trust deed provider on that issue.

The difficulty might be if that £12500 commitment, in lieu of the equity at the start of the trust deed, was part of the basis upon which your creditors agreed to allow it to become protected in the first instance.

Hi nevil99

It's worth mentioning that if you were to sell your property and there wasn't £12,500 equity in the property, you wouldn't be asked to pay any more towards your Trust Deed. If there was a shortfall, this would also fall in to the Trust Deed.

Julie

i wrote back to my trustee and said id agree to pay up the 12.5k after my 3 years was up, got a letter back today saying he will extend it for 12 months quote "at the end of the 12 months i will expect you to furnish me with your proposals to realise your trust deed "....

so does that mean iv 12 months to find 12.5k ? i dont even earn that in a year [:(]

Hi nevil99.

How much do you pay into your trust deed each month at the moment?

i pay 36 payments of £50 ,which ends in june this year , i know it seems low,but thats all thats left from my wage afterbills food etc

Hi nevil99.

If you were paying £50 per month from the start of the trust deed it would seem that it's only because of the £12500 equity commitment that your Trustee decided to take on the case, and also that your creditors agreed to the trust deed becoming protected.

I don't think your trust deed provider is going to be in a position to continue to accept £50 per month in the long-term as it will take nearly 21 years to deal with the equity.

Unfortunately, and I am sorry to have to write this, that probably means you'll need to find a third party to fund the payment or to consider selling the house. As Julie mentioned previously, selling the house will bring the trust deed to an end even if the full £12500 isn't generated.

Given that there is unlikely to be £12500 available from the house - and even less if the trustee has to force its sale, I imagine they may be willing to negotiate nevil99. Is there any way that you can find something to offer to your trustee, eg from a third party? You never know, they might be open to accepting a fraction of the £12.5k if you make it clear to them that the alternative is them having to force a sale and getting even less back.

thankyou all for replies ,

i made a few calls today ,if i were to forced to sell i would have to pay just over £2000 to mortgage company for settlement , would also have solicators,advertising fees etc to go on top of this ,
i also found out that i would have to pay back the local council £3000 for the home improvement grant i recived if i was to move or sell within the 3 year time period from when it was granted ,
the grant was for heating system ,at the time the bathroomand kitchen were removed ,which is not replaced so ,i recon the house value would be lessand i think it would be difficult to sell anyway in its condition .
can you advise if the property did go on the market anyway ,is there a time period before they would give up sort of speak , say it was on the market 2+ years with no offer . would they just let it go , or would i be forced to continue until it did sell ?

Hi nevil99.

They're not going to want a sales process to run on for years.

You may wish to make your Trustee aware of the details of some of the costs you have mentioned that will be involved in selling the property.

This may help you to negotiate something with your Trustee if you are able to come up with some kind of offer that seems better for them than the reality of your house being sold (as Kevin was suggesting in his post).