Check If You Qualify

Can I remortgage while in a Trust Deed / Sequestrated / DAS?

Sharon McDougall - Updated - 2nd May 2024 - 2 minutes to read

If you’re a homeowner in Scotland, and are experiencing high levels of debt, your property may be affected when you enter a formal debt relief procedure. This doesn’t necessarily mean you’ll need to sell your home however, you may be able to remortgage to provide additional funds for your creditors.

If you have a regular monthly income, you may qualify for a remortgage despite your poor credit history. Here we look at the three main debt relief solutions in Scotland, and the likelihood of a remortgage being required.

Remortgages and trust deeds

When you’ve already taken out a mortgage on your home, or you own it outright, it’s likely your trustee will require you to release equity at the end of the trust deed term – generally four years.

As long as there’s sufficient equity available to make the transaction worthwhile, the money will be used to repay your creditors. Otherwise, you’ll have to extend the trust deed term by a further 12 months.

Scotland Debt Calculator

Get a rough indication of what your repayments might be under each of our different debt solutions.

Your Total Debt

£0 - £5,000

£5,000 - £10,000

£10,000 - £20,000


Your Employment Status

I am employed

I am self-employed

I am unemployed

I am a student

I am retired

Your Total Monthly Income

£0 - £1,000

£1,000 - £2,000

£2,000 - £3,000


What can you pay monthly towards your debt?

£0 - £100

£100 - £200

£200 - £300


Can you remortgage your property if sequestrated?

When you’re sequestrated, your assets pass to the trustee who must sell them to achieve the highest possible return for creditors. In the case of your home, the trustee generally aims to help you stay there if possible.

Being in sequestration severely limits your ability to obtain any form of borrowing, but if the property is jointly-owned, the joint owner may be in a position to remortgage in their sole name, effectively purchasing your share of the property.

In some cases, family or friends may wish to invest in property, and be able to buy you out with a view to renting it back to you. They receive an income from their investment, and you can continue to live in the property.

How to remortgage under the Debt Arrangement Scheme (DAS)?

The Debt Arrangement Scheme differs from sequestration and Scottish trust deeds in that you repay your debts in full, but over a longer term. Although DAS doesn’t involve formal insolvency, the procedure does negatively affect your credit rating.

So if you decide to remortgage, any current remortgage deals will be out of reach. There are lenders who specialise in remortgages for people with bad credit, however. This generally involves paying a higher rate of interest, or agreeing to other generally unfavourable terms when compared with a ‘standard’ remortgage.

Scotland Debt Solutions can provide further advice on remortgaging whilst in a trust deed, sequestration, or DAS. We work from five offices around Scotland, and will arrange a free same-day meeting to discuss your situation.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...


Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser


We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office


We can help you with...



Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners