Hi Mummyof4 and welcome to the forum,

We'll done on taking the first step in asking for some advice which can sometimes be the hardest.

In terms of the equity, how did you come up with the figure of £12,000? Before you would enter into a Trust Deed a valuation of your house would be obtained along with a redemption figure for your mortgage. From this we would be able to calculate the equity. You may find that the equity could be less than what you think.

If you do have some equity in your house then you have a couple of options:

1 - extend your Trust Deed payments at the end if 3 years to pay this over. This is the most common way
2 - a friend or family member could pay the equity as a lump sum or by making contributions along side yours

When calculating the equity we would look to adjust the figure for any selling costs so this would again reduce the amount of equity that you would have to pay in. If it turns out that you don't have any equity then your property would be protected and you wouldn't need to pay any additional money for this. Once the equity had been confirmed we could then pull together a plan and confirm this in writing.

Any vehicle worth less than £3,000 isn't taken into consideration in a Trust Deed. Your husband would still be able to pay the finance on the vehicle as he requires it for work. Do you know if it's actually "hire purchase" finance he has for the van? Sometimes people take out finance against a vehicle but it's actually just a loan which can be included in the Trust Deed. You can find this out by reading your finance document for it. It should tell you on the top of this.

The best thing to do is sit down with an advisor in person and discuss your full financial situation. The advisor should take you through all of your options from a Trust Deed, DAS and Sequestration.

The most important thing is to make sure you get everything in writing with regards to your monthly payment and what will happen with any of your assets. If you do this then a Trust Deed really can be a simple and straight forward plan which will give you a light at the end if the tunnel.

I got redemption figures from mortgage and secured loan which add up to £78,000 and I think my property is worth around £90000-£100000.

We want to continue paying the van so is it an option to keep it how it is or do we need to include all debt in trust deed?

I'm speaking to someone from kpmg this morning but wanted to be a bit more clued up before hand.

You want to make sure that KPMG carry out a valuation of your house to confirm the amount of equity and then set out I'm writing how this will be dealt with.

You can continue to pay the van but only if the finance is hire purchase. If it isn't then the finance can be included in the Trust Deed, you won't have to pay this but you can keep the van. A good advisor will be able to sit down with you in person and look at the type of agreement it is.

All unsecured debt has to be included into the Trust Deed.

Are you actually sitting down with an advisor from KPMG to discuss things? We would always suggest sitting down to do this with and advisor or speak with a numbers of advisors from different firms as procedures can very from firm to firm.

Have a look on the forum for feedback on KPMG and other peoples opinions on them who have used them for a Trust Deed.

As I said the most important thing is to get everything in writing that way there will be no surprises.

At the moment Trust Deeds last for a minimum of 3 years. As of the 28th of November this minimum timescale increases to 4 years.

Once you have spoken with KPMG feel free to run by us what you have been told and we can give you some advice.

I'm speaking to them on the phone.

I'll see what they say, at the moment feeling doubtful

Hi Mummyof4

The key point is always the property and any equity within the property.

Before doing anything, you should have this fully assessed by the IP and reach an agreement how this should be dealt with. If there is no equity depending on the valuation, then that should be the end of it. If there is equity, then a figure should be finalised and an agreement reached on how this will be dealt with. That way you have a clear path forward with a start date and an end date.

If you provide a copy of the finance agreement, the an advisor should be able to clarify if the agreement is HP, Conditional sale etc. Whatever the outcome, cars are not normally an issue if they are required for work. Again this can be clarified before doing anything.

Mark

You want to make a list of questions to ask them about how a Trust Deed will work with their firm. As I said procedure can vary from firm to firm on how they treat assets and how your case will be handled from start to finish.

As Mark has said, if you have no equity then your property will not be as risk. Some firms ask for a £500 nominal sum payment to protect your property on the basis that it does not have any equity. The firms represented on the forum by the experts do not charge this fee and you want to clarify this with KPMG.

I always look at it on the basis that you are going to be dealing with a very important part of your life in respect of your debts and assets. It's on that basis that I believe a meeting in person (location permitting) should always happen, sometimes even two meetings to make sure you are happy with everything. You're going to be dealing with an advisor and a firm for the next couple of years so you need to be confident and comfortable with things and have a good working relationship with that advisor.

Take your time to think things over and make sure you are happy with everything before proceeding. The time taken at the start can ensure that your Trust Deed should run without any problems.

Hi spoke to kpmg and they have said DM Hall think we're in negative equity but will do a drive by to check I think they are wrong but in reality at the moment it's in my favour to be that way, they did mention about the £500 payable in the first 6 months to secure my house ( which I'm sure my mum will pay).
Regarding van it will be fine as long as worth less than £3000 in 3 years time, she's gonna call me back tomorrow regarding wether or not my husband should make himself a ltd company or not but can't see any problems with having to do that, also I need to open a new bank account but not sure who to try. Been told bank of scotland won't allow it so I've applied with tsb but just realised they are part of the same group was thinking about Clydesdale as I need somewhere in my home town any suggestions?
Also there was no mention of meeting in person is this ok/normal?
I'm still a bit nervous and doubtful about a trust deed and kpmg so not gonna sign anything til I'm 100%
Thank you for your advice #128515;

Hi Mummyof4.

There's no need to find that £500. Lots of firms (including the four represented here by Mark, Kevin, David and Rob) will do the same thing without an extra £500 being payable.

From years of posting and reading here I'd say that nothing prevents future problems more than a face-to-face meeting at the start. This is important for everyone, but doubly so for homeowners.

Most banks offer an account to people in trust deeds. You need to apply for the most basic account at a bank you owe nothing to.

Barclay's and Santander

Good luck and not sure if you got the subliminal messages posted above.........

SHOP AROUND!, you're in no hurry anyway the only thing you need to make sure you keep paying while you decide what you're doing is you mortgage. KPMG may have said negative equity but another firm may say otherwise.

Hi mummyof4,

If your property has negative equity and this is confirmed by a valuation and redemption figure then this works in your favour for the Trust Deed as your property would not be at risk as a result of entering into a Trust Deed.

Did they say if it was £500 in total or £500 per person if both you and your husband enter into Trust Deeds with them? As TDA has advised, the firms on the forum don't charge this extra fee.

Also, how long did they tell you that your Trust Deed's would be over? Was it 3 years?

In terms of a meeting in person, it really comes down to how comfortable you feel about doing everything regarding the Trust Deed over the telephone especially when it comes to your home and assets. We always suggest meeting with your advisor in person to discuss everything to do with a Trust Deed, DAS and Sequestration which I hope KPMG also told you about. There is a lot to know about all three of the options which is why I personally think a face to face meeting is very important. This meeting can take place in your home, our office, your work or anywhere else that you feel comfortable meeting. As TDA has advised, by meeting with someone it reduces the risk of future problems arising. Both you and your husband would then have the chance to ask an advisor any questions that you may have.

It's only natural to feel nervous about everything which you are doing. Take some time to browse the forum and do your own research as this will help to reassure you about the Trust Deed.

£500 between us I think.

I really don't mind doing it over the phone as I'm quite busy with having 4 kids, as long as I have everything in writing.

Thank you everyone for your advise I will post back tomorrow after the next phone call.

Do speak with at least 1 other firm before deciding. Whoever you go with, make sure you get everything in writing. I have had a lot of problems with KPMG, a lot of which probably wouldn't have happened if they had explained everything properly to me and put everything in writing.

Hi fcwalker,

Did KPMG just discuss everything over the phone with you? Did any face to face meeting take place?

No nothing was discussed face to face, we've spoken 3 times and they are calling me back today?

I'm getting vibes that kpmg are not very good, would this be correct.

What do you think I need to get in writing, info regarding house and vehicles what else?

Thank you