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Scottish Trust Deed Forum
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Topic starter
05/01/2012 7:07 pm
I am considering entering into a trust deed, but while speaking to the company today, they said for me to protect any assets during the payment plan, i would have to get a friend or family member to pay £500, is this correct
05/01/2012 8:10 pm
Not all companies charge this fee.
Best to speak with the likes of Mark, Kevin or Shona on here about their company policies.
05/01/2012 8:16 pm
What assets do you have to protect? Is it equity in property?
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
05/01/2012 10:08 pm
Hello Gillian Munro and welcome to the trust deed forum.
Lots of trust deed firms used to charge this £500 to "protect the equity".
It simply means that a house (that has no equity at the start of a trust deed) isn't revalued later on in the trust deed when equity has developed (if house prices go up, or you pay your mortgage down for example).
Lots of firms don't charge it any more, including those firms represented here by Mark, Kevin and Shona. They also will not revalue the home later if there is no equity at the start; they'll "fix" the equity position as it is at the start and confirm this in writing to you.
As such, paying the £500 seems like a waste of money.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
05/01/2012 10:31 pm
Hi Gillian
This has been covered on a large number of posts from companies who charge 1 x £500 to 2 x £500 & even 3 x £500 for properties which have no equity.
If the property has no equity, that should be the end of it and that position reported in the proposal to creditors. My advice is avoid firms who charge this at all costs.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
