Hi denners and welcome to the trust deed forum.

Assuming your home is jointly owned (it sounds as though it is) your share of the equity, using the lower end of your range, seems to be around ?ú35000.

This is less than your debts of ?ú45000 so in theory a trust deed might be a possibility. However, as part of your trust deed you will need to pay in your share of the equity (?ú35000 for example). It's unlikely you'd be able to achieve that via a remortgage while in a trust deed based on current lending conditions. That would leave you relying on friends/family to come up with ?ú35000 in lieu of the equity, or selling the home.

It therefore seems that more appropriate options will exist for you:

Remortgage/Secured Loan - Useful only if the money can be obtained on terms that mean your mortgage payment remains manageable and assuming you can raise enough to clear the debts.

Sale of your home - Would enable the full clearance of debt and hopefully leave you with a decent deposit for a new home (with better capacity to borrow as you would no longer have the debt burden).

Debt Arrangement Scheme - Would provide you with a structured repayment plan, with legal protection from creditors, though possibly with a pretty long term.

Debt Management Plan - A fairly flexible option, though without the legal protection and other guarantees offered by DAS (but with the potential for a long term).

I think I have no understanding of what happens at the end of the TD

I take it there would be:

1. Payments from myself for three years based on disposable income calculation
2. Repayment of the equity at the end of the term

Is this correct?

It really is looking like a DAS is the way forward, as either way I'd probably be het for full repayment (or near as damn it) with a TD anyway?

Regards

Hi Denners, welcome to the forum.

TDA has hit it spot on. You should only consider a Trust Deed if you are confident that you could re-mortgage, unlikely at the moment in the current climate, or if you knew a third party/family member who could purchase your share of the equity, or if you were happy to sell the property if all other avenues were not available to you.

You are correct in thinking that your income and expenditure would be assessed and you would be asked to contribute any disposable income towards your Trust Deed for three years. Your share of the equity could be realised at any point over the three years.

Have you had your property valued recently, as you may find that you don't have the kind of equity that you think you do.

Have you calculated what your disposable income would be on a monthly basis? Obviously with DAS you would need to pay all your debts in full, but your property would be protected.

Julie