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 Finders
#203242 Hi there,

I should be able to finish my trust deed on August next year but with the current credit crunch I don't understand how I'm going to be able to re-mortgage to release the agreed £7,500 from my house. Even people with good credit ratings can't get mortgages. Does anybody know what will happen to this £7,500. Hope you guys can please help.

David
By plasticdaft
#203253
Finders wrote:Hi there,

I should be able to finish my trust deed on August next year but with the current credit crunch I don't understand how I'm going to be able to re-mortgage to release the agreed £7,500 from my house. Even people with good credit ratings can't get mortgages. Does anybody know what will happen to this £7,500. Hope you guys can please help.

David

If you are unable to release the equity is it written into your deed that it could run on for a further 12 months?? How much are you paying a month and what firm have you used??
By wdm2
#203353 You could ask for a new valuation to be done. Chances are, the figure may be less with falling house prices.

Your IP may be able to recommend a specialist lender who can provide finance in these circumsatnces. They will charge the Earth but all being well you can remortage to a better deal in a couple of years as your credit rating improves.
By plasticdaft
#203382
wdm2 wrote:You could ask for a new valuation to be done. Chances are, the figure may be less with falling house prices.

Your IP may be able to recommend a specialist lender who can provide finance in these circumsatnces. They will charge the Earth but all being well you can remortage to a better deal in a couple of years as your credit rating improves.

The problem with getting another valuation done is that not all house prices have fallen,I know that mine has increased in value still,so this plan may backfire and you may end up being asked to release even more equity!!

Is it ethical for your IP to suggest a company to sort out a remortgage with?? The company we used for our trust deed is Tenon and they said that they were sure they could sort us out in the same way but I didnt think it was right or proper.
By jade
#203407 Hi Finders

My first question is why wait the year? I would be proactive now and start talking to your current lender an dif no joy there - an IFA about your remortgage options now and in 12 months time.

Second - what is the exact agreement you made with your IP regarding the equity - do they want equity as it was at the beginning? Have they said it will be revalued at the end? - In other words is it definately £7,500 they want - again I would act now and get something from the in writing as to how much you have to pay for the equity.

Paying equity over 12 months by contributions is not a standard in Trust Deeds - some IPs will allow you to do it - but 12 months is the max period you can extened TD by - some IPs wont entertain it at all.

Bottom line is - dont wait another year to deal with this - take the bull by the horns and then you have a year to sort rather than wait till the end and get stressed trying to sort it then.

Some IPs - where you are able to demonstrate that you have tried everything to get a re mortgage and cannot wil in some cases - and I stress only some case -can write to your creditors and ask that the equity be abandoned - it is up to your creditors- this would depend on the IP, the equity level and your being able to document the efforts you have made to get funds.
By Finders
#203585 Yes that's the issue. My trust deed company got a valuation at the beginning and said that "they" were not going to pursue anymore than the £7,500 equity at the end of the trust teed. Since then my house has went from £95,000 in value to £125,000, so I'm definately not going to push for a revalue. I'm wondering if my creditors can demand a revaluation to see if they can get more equity. I'll contact my IP and ask them but I think it's going to be a case of just selling my house at the end of the term and renting for a few years until my credit rating improves. Any comments would be appreciated and I'll the forum know how I get on. I would like to keep the house but certainly don't want to risk the equity I've luckily attained.
By wdm2
#203597 If you've got an agreement from your IP that £7500 is the figure then they can't change it now. That's why we always recommend dealing with equity at the start of your TD.

I think you really need to discuss your options with your IP.