Welcome to the trust deed forum calvie.

A few years ago it used to be relatively straightforward to borrow 90%, 95%, sometimes even 100% of your home's value even if you were in a trust deed.

That all changed with the credit crunch. If you're in a trust deed it's now virtually impossible to get a mortgage at all, and as far as I know totally impossible to get a 100% loan-to-value mortgage.

You're therefore highly unlikely to be able to raise this sum by going to your existing mortgage provider or a new one.

Some people are lucky enough to have a third party, often a relative, that can come up with a lump sum to deal with the equity for them. A few people might choose to sell their home to raise the equity.

Otherwise you're probably looking to have to extend the trust deeds to pay over the money from your income I'm afraid.

Can you realistically afford to double your payments?

In the past remortgaging was certainly an option for the release of equity. These days it is a struggle for anyone with poor credit history or subject to insolvency proceedings to source a lender who will take on the "perceived" risk.

It is certainly worth asking at the bank whether they would entertain increasing your level of borrowing, but as you are both subject to a Trust Deed it may be that they are unable to release sufficient equity to be able to clear the sum due to the Trustee. Of course, if they can release some, then you should contact your trustee and see if that would be acceptable to him.

In the event that your bank or another provider are unable to get the equity released it would appear that the 2 extra years payments would be required.

(Assuming that you do not have a third party able to pay that sum to the trustee or are willing to sell the property)

Can you confirm if your normal contributions end after the three years and then you would just continue to pay the same amount for another 2 years to clear the equity? Rather than it being added to your current level of contributions.

Hi calvie and welcome to the forum.

When you enter into a Trust Deed the Trustee needs to establish the equity in your property and then you are required to pay this into your Trust Deed somehow. Normally Trust Deed's last for 3 years (before the change in Nov 13) and at the end of the 3 years you would then need to pay over the Equity (£14,000) or by extending your monthly payments.

Unfortunately it's almost impossible to re-mortgage to release the equity of £14,000 nowadays but always work approaching your bank to ask.

If your unable to re-mortgage then you would need to consider increasing your payments to pay over the £14,000 as others have said.

Thanks everyone!

I didn't think we would be able to re-mortgage tbh so looks like we will be paying for another two years.We will struggle with paying £600 per month but we will get there I suppose as only other option would be selling the house which we really don't want to do.

There's no time limit as such for collecting equity by extending the period. 2 years seems to be Ta average, howeve I don't see ant real reason why the period could not be dye deed over a longer period at a reduce amount.

There is also nothing to stop the Trustte making interim dividend payments to creditors before the 3 years and throughout any extension.

Mark