Stop Repossession

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Stop Repossession

Repossession is a last resort for mortgage lenders, and one that they will typically not employ unless the borrower is deeply in arrears with no way out. At an early stage, lenders will try and stop repossession by offering the borrowers a repayment plan.

It is important to discuss the situation in detail with your lender, and give them the most complete financial picture possible.

Short-term financial problems can often be solved by lenders cutting repayment amounts for a short time, or the borrower getting a more competitive remortgage over a longer period. Borrowers in arrears and facing repossession should look for ways to increase their income such as tax credits, renting out a spare room, working overtime or taking on an extra job, or seeking family assistance.

Drawing up a regular repayment plan with the mortgage lender, and working out exactly how much you can afford every month will allow the borrower a potential chance to get out or arrears and stop the repossession process.

Debt advice agencies should be considered, but only choose free ones that help with a repayment plan and negotiate for you. Each mortgage lender differs, but many lenders are surprisingly understanding of this type of situation. If you are unhappy with the way your lender treats you, you can complain to the Financial Ombudsman Service.

If you are worried about your house being repossessed, there are a variety of free debt advice services such as National Debtline and the Citizens Advice Bureau.

If a lender proceeds to repossess your home, they will attempt to sell the property at auction as quickly as possible. If the amount that they raise fails to cover the debt, the original borrower will be liable. For this reason, it is often better to sell the property yourself rather than let it be repossessed, if this is possible.

Borrowers should seek specialist advice, making sure that it is free, and avoid schemes such as sale-and-rent back.

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