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Protected Trust Deeds and your home

In a trust deed your property passes to the trustee. Whether you keep living there turns on equity — and on what is agreed at the start.

Applies to: Scotland

Written by The My Debt Cleared editorial teamLast reviewed 18 October 2026Next review 18 April 2027Jurisdiction ScotlandEditorial policy
In a Protected Trust Deed your interest in your home passes to the trustee. If there is little or no equity, the home may be excluded with the mortgage lender’s agreement. If there is equity, the trustee usually expects it to be released, often by remortgage or a third-party payment, or may agree extra contributions after 48 months. If an agreement is not kept, the trustee can sell.

What to do now

  1. Get a mortgage redemption figure and an idea of value.
  2. Ask any trustee to explain in writing how the home will be dealt with.
  3. Talk to a free Scottish money adviser about DAS, which leaves the home outside.

Equity decides

Equity is the value of the home minus the mortgage and other secured loans. With a trust deed, all your assets are conveyed to the trustee, including your share of the home. The trustee bases any figure on a professional valuation.

Excluding the home

Where your only or main home has a mortgage and there is no, very little or negative equity, the trust deed can exclude it. The trustee gets a current valuation and redemption figure, and the mortgage lender must agree not to claim in the trust deed for the secured debt. You keep paying the mortgage as normal.

If there is equity

  • Remortgaging. The trustee may ask you to try to remortgage during the deed to release the equity. Proposals should set out the timing and what evidence will show you have taken reasonable steps.
  • A third-party payment. A relative or partner may pay the trustee the agreed value of your interest.
  • Extra contributions instead. The trustee may agree that you pay additional monthly contributions after the 48-month period in place of the equity, compared against what creditors would get from a sale.
  • Sale. If no agreement is reached, or one is broken, the trustee can sell the property and receive the full available equity.

The arrangement should be recorded at the start, so ask to see exactly what has been agreed.

If family live with you

Citizens Advice Scotland says that if your home is included, family live with you and the trustee wants to sell, you can ask the sheriff court to refuse or delay the sale. Get advice quickly if this arises.

Joint owners

Only your share passes to the trustee. A sale or buy-out involves the other owner, who keeps their share and should take their own advice.

Your mortgage

The mortgage is secured, so it sits outside the trust deed. Keep paying it; arrears can lead the lender to take action regardless of the deed.

If you rent

A tenancy is not an asset with equity, so renting is usually not affected. Keep paying current rent; arrears from before the deed can be included.

Compared with other Scottish options

The Debt Arrangement Scheme does not touch your assets, including your home, but you repay in full. Sequestration also puts the home in play. DAS vs trust deed.

This page explains how the solution works. It is not a recommendation, and it cannot tell you whether it suits you — a free, regulated debt adviser can look at your full situation.

You can get free, impartial debt advice

You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.

Common questions

Will I lose my home with a trust deed?

Not necessarily. A home with little or no equity can be excluded with the lender's agreement, and equity can often be released by remortgage or third-party payment, but the trustee can sell if no agreement is kept.

Can I pay extra instead of releasing equity?

Sometimes. A trustee can agree additional monthly contributions after the 48-month period in place of the equity.

Do I keep paying my mortgage in a trust deed?

Yes. The mortgage is secured and sits outside the deed, so keep paying it as normal.

Protected Trust DeedsDAS vs trust deedTrust deed costsDebt help in Scotland
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