Davie

The shortfall should be written off as part of the trust deed. The debt existed at the date of you entering into the deed.

I would speak with your trustee so they can write to the secured lender.

p

Welcome to the forum Davie19.

I'm assuming your mortgage was taken out prior to when your trust deed started in this answer.

If this is true, then your liability is covered by your trust deed. You should make your trustee aware so that they can assess the consequences of this development. For example, this development may result in your creditors receiving much less than they originally anticipated and accepted.

If you complete your trust deed and get discharged from your debts, you'll have no further liability for this shortfall.

It's not the case that you and your ex each have 50% liability for this shortfall debt. There will be "joint and several" liability, meaning that you each actually owe the full amount.

Therefore the full amount is covered by your trust deed. However, your ex partner doesn't benefit from this. The bank can still seek full repayment of the shortfall from them (minus any dividend that they actaully have received from your trust deed in the future).

Thank you for the replies. The mortgage was took out before trust deed. I'll phone them now and get it sorted. It's a big relief hearing these responses so thanks again.

With the house being repossessed will this go against me once my trust deed is completed?

Hi Davie1. When you ask whether it will go against you, are you meaning in terms of your credit rating? If so then the answer is probably yes, but any defaults/decrees that are marked on your credit file disappear after 6 years, so it will clear before long. It is the same for your Trust Deed - the fact that you had it will still show for 6 years from when it started before disappearing off your file.

Hi Kevin, what I meant to say was because it's a repossion will this go against me if I go to buy a house in future? Also since this debt was added half through trust deed does this mean it's going to be another 2 years before my credit rating is clear then?

Hi Davie19.

We're not credit record experts so you may wish to check elsewhere as well, but I do believe that a repossession will register on your credit report. If it does, it could remain on your credit report for 6 years. This means that it could remain on your credit report after your trust deed is no longer there.

When applying for credit, lenders can ask you for information concerning your past which is no longer present on your credit report. A previous repossession or trust deed are two things that could be of interest to a future mortgage lender for obvious reasons.

Therefore it's possible in future mortgage applications that you could be asked about things like whether you have ever been bankrupt, in a trust deed, had a home repossessed etc. You're obligated to answer accurately and the lender can choose what to do with the information provided.

Lenders will have different application questions, so when the time comes to apply for a mortgage in the future it would be best to use a broker and make sure they're aware of everything that has happened in the past. This should help them to guide you to mortgage lenders that are more likely to lend to you.