The trust deeds in Scotland are a major way to rebuild your financial life. This opportunity is available only for citizens of Scotland and has a tenure of four years. It is a way out of serious debt. Until 2013, the trust deeds were of a 3-year-old tenure. The legislation was later changed in multiple sections and the three years standard solution has become a minimum four year. There is an option which benefits the debtor. At last debt consolidation can provide some relief by helping them pay a single mortgage to a single lender or trust deed administrator instead of having to pay multiple creditors at a time.
Can I end my Trust deed before four years?
The new legislation is targeting to stop people from entering the trust deed and failing to repay their creditors in full.
If you have mortgaged your home in a Trust Deed, the equity figure will be the value of your property deducted by the amount due for paying the mortgage. The administrator of the trust deed has very little, if any, benefit in cases when the equity amount is small. The trust deed, although set to a minimum of four years can be ended prior to that, provided you have paid the creditors in full and the cost of the trust deed has been recovered. This way the equity debts are closed before time as there is no benefit to the creditors to keep the case open.
Some of the deeds can even exceed the four-year tenure depending on the repayment ability of the debtor. The goal is to complete the repayments including interest. Even if you are able to provide the outstanding repayment amount from the third party in your friends or family, you are allowed for early discharge from the deed.