protected trust deed equity release

poetica

Hello there, I have been following the protected trust deed section and was wondering if anyone could offer me adice. I entered into a protected trust deed 18 months ago and, because I have a secured loan and a mortgage, I was told at the end of the 3 years I would have to pay back around £5000.00 in equity. I agreed to this but in October 2009 my trustee wrote to me to say that I now have to pay back £12500.00 in equity at the end of the deed as I have paid more mortgage and more secured loan off. I have no way of raising this kind of money at the end of the deed and there is no way the bank will allow me to release equity in my house. Is there anything I can do here? I cannot sleep for worrying at the moment! Also, my house was only ever valued at the start of the deed in 2008 and I know that even if I am forced to sell, I won't get the price the house was valued at. So, what happens there? Do I still have to find the money from somewhere? Obviously I have another 18 months to go and I know the equity demanded will go up yet again, just like the last time. I really appreciate anyone who can offer me any advice on this. Thank you so much

Charco_2

Some companies seem to operate differently in Scotland. Usually they like to get the Equity figures addressed nice and early in the proposal, even if the actual payment doesn't occur until the end of the three years but i was under the impression that the figure agreed at the start of the proposal was the figure that would be paid!

Provided you can release or address that figure it's hard to see how you could be penalised for not stumping up for later revised amounts! (obviously if you CAN release more then you probably should but if you can't then that should be it).

poetica

Thanks very much for your reply. Unfortunately the trust deed company say that they did not tell me this would be the amount payable at the end - oh but yes they did indeed - and the amount will keep increasing. I have a meeting with them later this week. All looks a bit bleak to me at this juncture. Many thanks again for your concern and advice