One other thing (sorry, I couldn't edit my previous post for some reason?)with the letter stating the trust deed firm would have no onterest in my home, can they change their mind? The letter states they can't touch my home or equity, but after reading some other threads here, I'm not sure now?

Welcome to the forum MrMan.

Sorry about the editing issue - there is a quirk on this forum system that prevents editing the first post on a thread.

I'm afraid that it's quite likely to be impossible to consolidate your mortgage and secured loan while your trust deed continues. There's nothing to stop you trying though, but unfortunately I don't think the current mortgage market is likely to be accommodating.

The letter you mention would usually be dependent on you completing your obligations, not selling the home or otherwise raising money against it, and continuing to comply with reasonable requests from your trustee. I'm sure these are all things that you fully planned to do anyway.

Hi MrMan and welcome to the forum,

I'm not a mortgage expert so my advice is based upon a small knowledge of the mortgage market. I think for more specific mortgage advice you would need to speak with an independent financial advisor or speak with a lender direct about their mortgage products. In my own experience it's been impossible to secure a client a re-mortgage in a Trust Deed over the last couple of years.

Do you know if you have any equity available in your property? You will need sufficient equity or LTV (loan to Value) to be able to successfully re-mortgage to clear your current mortgage and also clear the secured loan. If you don't have enough equity then I don't think it would be possible for you to re-mortgage. Affordability will also be a factor in any mortgage application and the lender will consider your current commitments, your payment to the Trust Deed and also your credit rating.

If you have a letter from your Trustee confirming in writing that they have no further interest in your property and that they do not object to you re-mortgaging then I can't see there being a problem. The issue is if you were to receive funds from and re-mortgage then the Trustee would want these.

People normally experience a problem with their home and equity in a Trust Deed if they are not able to release the equity from their property. I think the majority of cases on the forum where there are issues with a property are very individual and I wouldn't compare these with your own situation.

Also, if your mortgage payments reduce, this could mean an increase in your payments to your Trust Deed.