Hello tompie1980.

Mortgage lending to persons currently in a trust deed has all but vanished since the credit crunch. This is especially the case where additional lending is being requested and even more so where the loan-to-value ratio is high.

With help from friends/family are you able to raise any lump sum (even if it is less than £15000)?

How much do you currently paying into your trust deed each month?

Hi
I could probably get about £8000 and I'd be struggling to even get that. I'm paying into my trust deed at present £150. I have myself and my daughter to feed and keep for the month with £270 which I'm struggling to do..

Hi tompie1980.

Reading back through your previous threads I think your trust deed is due to end in February next year?

I think if you can raise support from third parties to contribute a sum like £8000 by then there is a pretty good chance you'll be able to negotiate a deal with your trust deed provider to bring the trust deed to an end with a payment of that amount.

Your Trustee has a responsibility to do the best thing by your creditors. Forcibly selling your home would be a very expensive last resort, even more expensive if you were to put up some resistance. With that in mind, the creditors might be best-served by agreeing a reduced lump sum to bring the trust deed to an end rather than going down that path.

That does sound positive. The only trouble with the cash is its coming from my sister who wouldn't be able to get it until July next year. Do you think if I offered to continue to pay my trust deed until July next year then pay the £8000 they would be willing to take that. My mum and dad have already loaned me far too much and am now in dept to them and they just can't give me anymore. The problem I'll have is paying my sister back. She says that she is in no rush for it but its a lot of money and I would just pay her back the money I'd normally be paying to the trust deed. I would be in dept to her forever lol..

Hi tompie1980.

It's hard to speculate exactly what response you'll get, but four months isn't a very long period really. I'd have thought some flexibility should be shown.

Your trust deed provider will be well-aware that borrowing more money against property while in a trust deed is pretty much a no-go right now. As such, I think they'd be pretty pleased if you could offer them the basis of a deal that they could put to your creditors without getting into a situation where there is conflict.

We've seen this be the case on some other threads here recently.