Hello kailea and welcome to the Trust-Deed.co.uk forum.

The mortgage market certainly is a lot different to the way it was at the start of your Trust Deed and Trustees are very much aware of that.

How much are you expected to contribute in lieu of the equity? How much do you currently pay into the Trust Deed each month?

We are expected to release the equity on our property which is ?ú19500 and have been paying ?ú299 which increased to ?ú700 monthly due to temporary increase in income. Our property was valued at ?ú175000 at start of trust deed and would have expected it to have increased to around ?ú190000 if houses prices hadnt fallen. Any help is appreciated.

Thank you kailea.

Was the amount of equity agreed and set at the start of the Trust Deed, or has it been based on a recent valuation?

It doesn't seem right that it could have been set on a level of expected equity increase that may or may not turn out to be the case in reality.

Our property was valued at ?ú175000 at start of Trust Deed and the ?ú19500 is the equity which is to be released at end. If our property value has not increased or just increased slightly how are we expected to find a lender to help.
If we cannot raise this money what will happen? Any help is appreciated.

Hi Kailea

It is a difficult one due to the property and lending market.

The sale of the property is a last option and I'm sure the Trustee will look at any alternatives. If you are able to maintain ?ú700-?ú750 p/m then the Trustee may accept running the Trust Deed for a longer period with you maintaining the contribution in reduction of the equity. At the rate mentioned, the TD could be extended for just over 2 years.

Hope this helps a bit

Mark

We have arranged a few companies to start looking into the situation for us but am not holding out much hope of finding a lender.
It may be that if our Trust Deed allows we will be better off staying in it for another couple of years and paying monthly contributions,selling our property would not be an option.

Thankyou for your help.

Hi Kailea,
It may be that if you can find a lower amount from somewhere then the trustee might accept that instead, given the difficulty in arranging a remortgage. There is a fair chance they would, rather than have to look at forcibly repossessing your home and all the costs involved with that.

Hi Kevin
Still no companies come back to us re remortgaging. We have been looking into things and think that we may be able to get ?ú5000 from a third party which would leave us ?ú14000, would this be looked upon more favourably from trustee?

Do you know of any banks which are lending to people in trust deeds? there must be so many people in this same situation with the value of properties dropping.
Any advice appreciated.

Hi kailea,

In terms of your question regarding banks lending to people in Trust Deeds do you mean via a remortgage?

If that's the case there are some lenders who might but they tend not to be the high street names. For that reason using a mortgage broker makes sense.

It is the case that this part of the mortgage market is pretty limited at the moment I'm afraid.

You're right to say dropping property prices have caused an issue for many people but I think Kevin and Mark might feel that the introduction from a third party of ?ú5000 could work in your favour to some extent..........

Worth a try - is at least something that your trustee can propose to your creditors as an alternative.

I am a bit confused about the equity figure - was there ?ú19500 at the start or is this what there was expected to be at the end of the trust deed had property prices kept on rising steadily?

Hi Kevin

The ?ú19500 is the equity at the start of the Trust Deed but because the value of our property has'nt risen by much and banks are not keen on lending over 80% we are finding it difficult.

We have had a couple of mortgage advisors come back and say that it is a no go at the moment but things may change over the next couple of months (we have 5 months left before Trust Deed ends).

Thinking i may write to our Trustee and advise of what we have been told.

Any advice appreciated.

I think it's best to talk this through with your Trustee kailea.

Please let us know how you get on.