Hi WIKIKEE.

The trust deed providers here advocate setting the amount for equity at the start of the trust deed.

There's a consensus that it's fairer on all parties to know what is expected and where they stand from the start. As you've read around the forum I'm sure that you'll have seen the problems that can be caused when this doesn't happen and properties are later revalued.

Your Trustee doesn't take sides as such. They have a responsibility to treat you fairly and ensure that you benefit from the trust deed and the certainty and protection it affords if you meet your commitments to it. They have a responsibility to the creditors to ensure that you meet the terms of the trust deed and that as much money as can fairly (in line with the law and the terms of the trust deed) be recovered is done so to help repay the creditors. They also have a responsibility to meet the guidance and rules laid down by their regulators. They must balance this series of requirements.

On a practical level you may be able to negotiate with your trust deed provider if there is now less equity in the house. Their alternative is for the home to be sold if the money isn't paid over; if the sale (and the associated costs) would result in a reduced sum you may be able to make a case. It's really for you to make this case to your Trustee and persuade them that you're making the best commercial offer available to your creditors in the circumstances.

Many thanks for your advice, it sounds like I can only try and ask and see if they will go for it!