Welcome to the trust deed forum Paul and thank you for your kind comments.

One option would be to discuss the change of circumstances with your Trustee, it may well be possible to adjust the payment into the trust deeds.

If you prefer to give up the property my understanding is that any shortfall would become a debt within the trust deed, though it's worth waiting on confirmation from one of the experts on this.

Please be aware this may have long-term consequences as any mortgage application in the future is likely to ask whether you have ever lost/given up a property in such circumstances.

Hi Paul, welcome to the forum.

If your circumstances change, through no fault of your own, your Trustee should be in a position to reduce your payments to the Trust Deeds.

If however you did decide to hand the keys to your property back to the bank, any shortfall would become a claim, as long as the property was repossessed and sold prior to the conclusion of the Trust Deeds.

I also that note that you have a 'Together' Mortgage. The unsecured proportion of this should already have been submitted as a claim in the Trust Deeds.

Julie

To add a little to what Julie has said - even if the property is repossessed and sold after the conclusion of the trust deed, Northern Rock are not entitled to pursue you for any shortfall.
Any obligation you have to them ends when you are discharged from your trust deed. They still have security so are entitled to repossess and realise what they can from the sale of the property but if there is a shortfall then they cannot enforce it.

Hi all, thanks for the info. One further question please- To avoid repossession,if I am able to sell the property it will be likely that there will not be enough to repay the lender. Can this shortfall go in to the Trust Deed or can that only occur via repossession? Thanks, Paul

Hi Paul

It is unlikely that the lender will give clear title ( allow the sale) unless there are funds to repay the secured loan in full.

Mark

Hi Mark, Thanks for the reply. There will be plenty to pay first charge Northern Rock however very tight to repay second charge First Plus, with likelihood being not enough to pay them in full. In this situation I am sure Northern Rock would be happy as they would be getting paid in full, however do you think First Plus would not agree to it?

I feel getting rid of the property is the best option for me, with selling it the ideal option.

You sound so much like me. I had a Together Mortgage, got into debt, got a secured First Plus then bumped up my mortgage to cover that (honest, it was going to be cheaper) and ended up in a trust deed anyway due to me being utter cack with money and burying my head in the sand when things got bad.

Well done for grabbing the bull by the horns and looking at selling the property. Don't be too hasty though. Check with all your charges and see if there's a deal to be negotiated. Surely better for all involved to change payments than to lose a chunk of cash on a house sale. Good luck with whatever you decide to do.

Hi Gillian, Its not a nice place to be! All my payments are up to date on Trust Deed and first and second charges, which I'd prefer to continue, but it does seem that voluntary repossession seems a good option to give me as much of a fresh start as possible.