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11/05/2021 11:56 am
Hi, I'm looking for advice. My husband and I are in a Trust Deed which ends Jan 2022. We own our home with a help to buy mortgage. We have decided to separate but don't know what to do financially. Can we sell our home whilst in a Trust deed? Would we both be able to obtain mortgages again? Any help would be appreciated.
11/05/2021 12:25 pm
Hi Mastyk,
It may be possible to sell your home during a trust deed, but only with your trustee's prior consent.
In reality you may not want to sell the home until after you're both discharged. This is because if you sell the home prior to discharge the equity (the profit on the sale) will be paid to your trustee to help repay your creditors.
We're unaware of any mortgage lenders that will offer new lending to someone currently in a trust deed. It may be some time after each of you get discharged that this becomes viable again.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
12/05/2021 12:19 pm
Hi Mastyk,
Just to check, you say you and your husband are in a Trust Deed - you cannot jointly enter a Trust Deed, so if you're in a joint solution it may be a Debt Arrangement Scheme (DAS).
I appreciate you may mean you and your husband are each in individual Trust Deeds, in which case TDA's advice is correct.
In DAS you could sell the home and keep the equity. Whilst a DAS is still on your credit file you would likely struggle to find a lender who would consider a new mortgage, though you may wish to speak with a specialist broker or Independent Financial Advisor about that
