Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By salucoal
#168142 hi all

i am 22 months into a trust deed paying £600 per month
i have 14 more payments to make

my house was worth 128000 at the time i started my TD and my mortgage was 117000 at the time i started

i was told that at the end of my TD i would have to pay 11000 to my creditors

because i am on a repayment mortgage my mortgage is now about 110000 and my house is now worth in the region of 145000

i am finding it difficult to live under the restrictions of the TD and was wondering if it was an option to repay my outstanding 11000 and the 8400 still outstanding by remortgaging and finishing my TD early

my thinking was that everyone still gets the same money only earlier and it frees us from our TD early but i am not sure if you are allowed to do this or not

any advice welcome
thanks in advance salucoal
By dr-scarecrow
#168233 Why would you have to pay £11000?? I would assume he means to buy back the equity in your property. If so then do this now as if you wait until tour td is up in 14 months you will end up having to pay more.

No-one explained this to us when we took our td out. We had very little equity in our house and could have proceeded with a buy back for £500. But we didnt know any better and thought we would wait until the end of our td. We got the house valued in June and we have ended up having to pay £4000!! If we had done it at the beginning we could have saved alot of money, so if you can do it now!

Also we ended our td a couple of months early by paying the o/s monthly contricutions along with the buy back figure, so it can be done so long as your trustee agrees to it beforehand.

Hope this helps.
By salucoal
#168265 we have to pay 11000 because that was the difference between our outstanding mortgage and the value of our house at the time we started the TD
i was told at the time that this was the figure that mattered NOT what your house was worth at the END of the TD - is this not correct?

thanks for your help regarding the other question
By dr-scarecrow
#168314 We were told it is the price of your house when you apply for the buy back, as once you apply for this the trustee will send an estate agent out to value your house then, and that is the figure they use for the buy back. If we had settled this at the start we could have saved £3500!!

I would look in to it. Dont let them rip you off.
By wdm
#168402 You have agreed a figure of £11000 with the IP to release your equity and that's set in stone (good to have in wrting though). You don't have to worry about house price rises.

Scarecrow was unfortunate in having an IP who wanted to deal with the house at the end of TD.

ALWAYS ensure that the IP will deal with the equity at start of the TD or DON'T sign it.

Don't think the IP will let you pay off early though. You'd need the full amount of what you owe plus costs to end it or you could make an offer of composition which would need to be 25% but that would be at discretion of IP. Just ask the IP for their opinion though. If you are struggling with the £600 a month then the IP may reduce the payments and extend the TD by a few months at end to make up shortfall.