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Scottish Trust Deed Forum
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Topic starter
09/02/2010 8:13 pm
i have had differing views on my debt problems one was to use a debt management company the other is trust deed .i have been advised on at least 3 occasions by debt management companys that because i have an endowment plan running along side my mortgage (that will pay shortfall of ?ú39000 and is on plan to do so)i would lose this to the trustee as part of trust deed.and therefore trust deed is not the way to go is this in fact true as in 12 years i,ll be 65 and unable to find ?ú39000 easily
thanks
09/02/2010 11:13 pm
Hello maverick267 and welcome to the forum.
I suspect the answer to your question will depend on whether your endowment policy is "assigned" to the mortgage lender.
Do you know whether this is the case?
Could you also advise how much unsecured debt you have?
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09/02/2010 11:18 pm
Hello maverick267
Yes I'm afraid that if you have an endowment policy with a surrender value then it counts as an asset and would probably have to be surrendered in a trust deed. If the endowment is assigned to your mortgage then it cannot be surrendered towards your trust deed, but it would count towards the equity in your property instead so your house may be at risk instead.
Either way, it probably means that a trust deed would not be a good option for you. I suppose the exception would be if your debts are sufficiently large and your endowment is not assigned, then it may make sense to consider cashing in the endowment to fund a trust deed, and maybe switch the interest-only part of your mortgage to repayment instead. You'd really need to discuss your circumstances in detail with an expert before going down that road though.
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