Protected Trust Deed Queries!

jjm26_2

Hi,

I have a protected trust deed, and have so far made 10 payments, so 26 to go.

At the point of entering it, I had no assets. Still don't.

Just wondering:

1) I'm starting a new job and hope to be in a position within next 9-12 months, where I have a sizable deposit for a house. (I was advised at sign up that with the TD a 15% deposit will be asked for when seeking a mortgage).

If I take a mortgage, I presume the property will then have to be transferred to my trustee? If so, is there a way to avoid this or should I wait til I have been discharged?

Many Thanks

JJM26

blacklily

Hi,

I don't think you are able to get a mortgage whilst in a TD as you are not allowed to get more credit according to the terms of your TD. Also if you have a 15% deposit you shuld be declaring that money to your IP and it should be paid into your TD to go back to your creditors. Any change of circumstances you should advise your IP, if you will be earning more they will up your monthly contributions to your TD. Hope this helps.

I havejust made my last payment for my TD, my advice would be to be honest with your IP as anything you with hold from them could come back to bite you in the you know where. The last thing you want is any problems that could complicate getting discharged from your TD when the 3 years is up.

jjm26_2

blacklily wrote: »

Hi,

I don't think you are able to get a mortgage whilst in a TD as you are not allowed to get more credit according to the terms of your TD. Also if you have a 15% deposit you shuld be declaring that money to your IP and it should be paid into your TD to go back to your creditors. Any change of circumstances you should advise your IP, if you will be earning more they will up your monthly contributions to your TD. Hope this helps.

I havejust made my last payment for my TD, my advice would be to be honest with your IP as anything you with hold from them could come back to bite you in the you know where. The last thing you want is any problems that could complicate getting discharged from your TD when the 3 years is up.

Thanks for the advice,

When I set up my TD, through a debt management company, I was advised my contributions would only be based on my annual salary. I am in sales, and bonus, which isn't guaranteed, is a big part.

Any time I have carried out my status reports for my trustee, they can see the bonus on my wage slips, but only base it on my Salary. I haven't been hiding it from them, it is clealy visible on my pay slips / bank statements.

The new job I have has a great bonus package, so the extra money could be from there.

Thanks

James

blacklily

As long as you IP knows then you are adhering to your TD. Although I still would not recommend buying whilst still in your TD, I do not think you would get a mortgage till you are discharged. I am trying to get a loan for a car, I have just been discharged and can't get one anywhere.

aritchie24

Hiya,

I have just completed a Trust Deed and when I signed it, my IP said to me whatever you do, dont buy any property whilst in my Trust Deed. Also any extra money that I got from salary increases had to go to my Trust Deed as well. My IP asked for statements every 6 months as well.

Hope this helps.

dillars

Hi there,

I am joining in on this blog as I see that some of you have recently ended your TD. Myself and my husband also ended our TD's in the last couple of weeks and I think I'm more nervous being out of debt than in it! i know it sounds crazy but i'm so paranoid about spending money and i worry that having now completed a TD will continue to affect us for more than the next 3 years (of which we have been advised). I have just accepted a new job but have to await an official offer pending security checks etc - does anyone know if a TD will affect this?? Also, I was reading the original post put her regarding buying a house and I have to say that we were also told that it would not be adviseable and to be honest we sold our house last month to release the equity for the TD and now expect to be in rented accommodation for the next 3-4 years before we will get a mortgage. My husband also received annual bonuses from his work and he was required to pay 50% of this to the TD each year...i agree that you should be upfront about everything well in advance and i would query why the TD don't want any of your bonus - we were told that we would only get to keep 100% of it if it was less than £100 (in the end we were paying them around £2000 a year from it).
Hope this helps x