Welcome to the trust deed forum Paxton.

Could you tell us whether either of you have made any payment since the change of job please? I ask as you mention you could not afford both (which can be read in a couple of different ways).

Was there an exercise undertaken to see what, if anything, you could each pay after the circumstances changed?

Hi thanks for replying,
no we haven't paid anything since my husband changed jobs,i was hoping they would look at our new income and although the drop in my husbands monthly salary was roughly the same amount of money that we paid to both Trust Deeds.They didn't seem interested unless they were receiving the full amount and all they did was request our wage slips and bank statements every few months.Today's conversation with them i was hit immediately with what they where going to take away from me,by the end of the conversation they asked me to contact my mortgage lender to see if we could go interest only on our mortgage,i told them that i had asked my mortgage lender twice in the past if we could do that but we were told no,it would not solve our problem but she insisted that we should try again over the weekend.She also said that it could reduce our mortgage by hundreds which could allow us to pay at least £200 each.I haven't phoned my mortgage lender yet because i know deep down i will get another refusal to go interest only.So it seems to me if we cant produce £200 for each Trust Deed,there going for our car and bankruptcy.

Hi Paxton.

I think this situation could move in a number of directions and it's not really possible for us to say how things could and should develop from here.

As you have not been able to repay the amount that your creditors agreed to it is possible that your trustee could resign from your trust deeds and leave you with the debts to deal with again.

They could decide that the change in circumstances changed for reasons that were out of your control and therefore that the trust deeds are ended and that you are discharged from your debts.

They could also seek to bankrupt you, but this seems unlikely unless doing so would raise a decent sum for your creditors. With a car of modest value and no equity in your home it doesn't feel like there would be much benefit in this for your creditors given the costs involved. Your home wouldn't necessarily be at risk if there is no equity anyway.

I'd call the mortgage lender so you at least know whether this might be an option in terms of going interest only to free up some cash.

hi Trust Deed Assistant,thanks for replying.

Thanks very much for your advice, i will phone my mortgage lender asap.

I was told when dealing with this for a family member that lenders are obligated to 'treat their customers fairly' This may mean allowing a payment holiday or reducing to interest only-even if they restrict this to a set period of time. I have personally had no luck writing in excess of 5 times to Santander, even after a repossession was stopped the day before it was due to be actioned. I have since been advised that this will be successful if I have a solicitor write to the lender and ask them to demonstrate in what way they are treating their customer fairly.
I can't advise on the costs or benefits of this but maybe someone else has had success with/without solicitors' involvement?

The problem here may be that banks and building societies are under a lot of pressure to avoid interest-only mortgage lending because of the risk that problems are being stored up for later.

They may make temporary concessions in instances of financial hardship though.

It is a huge issue for banks but there are some very shortsighted decisions being made too.

[V]

I do remember from the last time i spoke with my mortgage lender that their policy is 12 months maximum on going interest only and because of that it wouldn't solve our situation and that's why they said no.

can anyone tell me how good our chances of being able to keep our car.its our car that my husband needs for work and is worth £2775?

Hi Paxton.

Usually cars worth less than £3000, and for which there is a reasonable need, aren't treated as assets to be realised in bankruptcy or trust deeds.

ok thanks that's a bit more reassuring.Phoned TD this morning to inform them that going interest only wasn't allowed,secondly i asked about the car situation and also asked them to put it in writing what steps they are taking next and what they expect of us.I was told she was too busy dealing with someone else and she would phone later,no phone call back as of yet.

Hi Paxton

You haven't said the name of your TD company and that is fine but I think some of these companies need to be reminded that they are not managing our TD's out of the goodness of their hearts; they are getting a decent fee for what they are doing. To be basically told you are less important than someone else and then not to call you back is disgraceful. Keep hounding them until you get the information you want.

AB

Hi paxton

I must agree and find the tone and response shocking. There is certainly nothing in the trust deed legislation stopping the interest only. We have a number of requests for mortgage payment holidays etc and normally fax our agreement within the hour.

As Alphab says, please keep on at them.

Mark

Hi Mark.

I think in this instance the barrier to going interest-only is coming from the mortgage lender rather than the trust deed firm.

It doesn't make the tone of the response any better though.