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Scottish Trust Deed Forum
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Topic starter
10/11/2009 9:34 pm
My wife and I have 6 mths to run on our trust deeds and are required to release ?ú50k equity from our home (this was agreed at the start with the trustee). We have been paying ?ú800 per month and are worried that we will be unable to secure a re-mortgage.
What will happen if on re-valuation of the property the value has reduced significantly?
What if I cannot find a lender? I'm presuming my current mortgage provider (RBS) won't be willing to let me re-mortgage (even though I've never missed a payment in the last 6 years).
I've noted on your forum that it could be as simple as extending the TD period beyond the 3 years however to achieve a figure comparable with the equity that was forecast would take 5-6 years.
Grateful for any advice. Many thanks
10/11/2009 9:50 pm
Hello Scofield and welcome to the Trust Deed forum.
Questions about how equity will be dealt with in existing Trust Deeds have been a common theme on the forum. The evidence is that different Trust Deed firms are treating it very differently. The actual written Trust Deed itself differs between firms as well so it's not going to be possible to give you an entirely clear answer.
The situation is obviously further confused by the changes in property valuations and mortgage availability over the past couple of years.
I think the best starting point may be to contact your Trustee to discuss your worries so that you can get their views and suggestions about what the best way to proceed will be. I'm sure they'll have already given it thought as similar factors will have affected many of their other clients in similar ways.
If you're concerned about the answers you receive please let us know and the forum will try to help you as best as we can.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
