Expired Mortgage2023-09-15T10:15:57+00:00

Expired Mortgages

Expired mortgages are a growing problem across the UK. In particular, many interest-only mortgages are coming to the end of their term and lenders are refusing to extend them. This is leading to home repossessions.We specialise in helping and advising homeowners in this difficult situation. We are dedicated to finding a solution that will stop the repossession of your home.

Expired Mortgage

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My Mortgage is Ending Soon – What Do I Do?

Contact Your Mortgage Lender

This is the first step you need to take. Without a dialogue between you and your lender, there is no chance that your situation will get resolved. Lenders are advised to encourage consumer engagement and allow you to consider your options.

Apply for an Extension

Applying for a mortgage extension is the most obvious solution to an expired mortgage. However, the lender is under no obligation to extend your loan term. Depending on your borrowing profile, the equity you have in the property, and other factors, your lender could reject your application.

Contact HMS

We are here to help at any point in this stressful process. Whether you have been rejected for an extension or your lender has already moved to repossess the property, we will work to find a solution that will keep you in your home. With years of experience in helping homeowners with expired mortgage terms, you will be in safe hands.

What is Eviction?
What is Eviction?

The Interest-Only Dilemma

We have encountered many homeowners who mistakenly believed that their mortgage would not expire as they are only paying interest on their loan. In reality, even though you are not paying off the actual loan, there will still be a date when the contract ends and the whole loan must be repaid.

This is also the case when a repayment mortgage has any arrears outstanding or charges that have not been paid. When the loan ends, the whole amount becomes payable.

The Expired Mortgage

The expired mortgage has become a worrying feature of the UK property market in recent years. The term refers to when the time frame your lender has given you to pay off your mortgage debt has come to an end. If you agreed upon a £100,000 interest-only mortgage for 20 years and that time has passed, you will now need to find £100,000 to pay off the capital.

Once the contractual end date for the mortgage arrives, everything changes. The lender now has far more power. To recoup the debt you owe, they will likely take repossession action against you through the court. Even if the judge understands your plea for more time, he will lack the legal authority to intervene unless you have a very specifically laid out defence.

What is Eviction?
What is Eviction?

The Credit Crunch and Interest-only Mortgages

The increasing amount of expired mortgages is largely down to the 2008 credit crunch. In particular, how this financial crisis affected the interest-only mortgage model.

Before 2008, interest-only mortgages were very popular. This was because many lenders did not require customers to prove how they would repay the loan. After the financial crisis, much stricter lending criteria were introduced. Tighter regulation now means that some people who were advised to take an interest-only mortgage are now being refused extensions at the end of their term. Instead, they are being asked to repay the capital. This includes:

  • Homeowners with no “repayment vehicle”. You now must prove how you will repay the loan e.g. through the sale of another property, ISAs, endowment policies etc.
  • Homeowners with bad credit on their file.
  • Older homeowners. Some mortgage lenders will not deal with customers over 75. However, the FCA has relatively recently introduced retirement interest-only mortgages to combat this age-based discrimination.

Available Solutions

Each lender will tackle the expiry of a mortgage differently, and a lot depends on how you have managed your account. By the time they contact us, most homeowners have already been refused an extension of their mortgage term by their lender. Importantly, there is no standard policy on mortgage extensions and lenders are well within their rights to refuse one. The FCA state:

“We recognise that customers are responsible for repaying their mortgages, repayment of the capital at the end of term is a contractual requirement, and that firms are not obliged to offer options at maturity.”

That said, lenders are told to treat repossession as a last resort. They first need to explore all other possible options. HMS can assess the structure of your mortgage and identify what your options are moving forward. From here, we will devise a tailored strategy that aims to keep you in your home.

A lot of homeowners do not contact us until the lender has taken eviction action. We have the knowledge and power to stop the eviction, but we cannot help you unless you call us.

What is Eviction?

How to Stop Repossession

Make sure you talk to your lender

1. Don’t take emergency finance

Other companies may have misled you into believing that a bridging loan or short-term finance is your best or even only choice. That’s not true. The temporary relief will be short-lived when you are facing repossession for a much higher sum.

Try not panic and stay calm

2. Don’t accept a quick sale

In desperate situations, you may be tempted to accept a below-market-value “instant cash” offer on your home. Avoid quick sale companies at all costs—they profit from your misfortune. We can provide better options.

 Review household expenditure

3. Get us to help

We can help you navigate through your options. We will force your lender to give you time to make a decision that suits you. Our first step is to assess affordability for you to keep the property long-term. If this is not an option, then we will ensure you speak to regulated finance professionals or have time to sell your property on the open market.

What People Say

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  • I contacted HMS to stop my repossession by my mortgage lender. David at HMS worked with me closely and supported me through the whole process. Today I had a Court... read more

    Matt Stokes Avatar Matt Stokes

    Richard gave us more than we hoped for as we had an expired mortgage term and worried about the looming repossession. We just didn’t know what to do... read more

    Dave Hatch Avatar Dave Hatch

    I contacted David at HMS for advice with my BTL rental who showed they have vast experience and contacts around the property sector. HMS quickly resolved any issues i had.... read more

    Kevin Perry Avatar Kevin Perry

    I will do my best to express how thrilled I am with how Richard handled my case! I had a ridiculously small debt threatening repossession and some free advice from... read more

    Queen Mary Avatar Queen Mary
  • I had some legal issues regarding a property and I googled a solicitor and rang this company which is a family business and spoke to the son of the father... read more

    Kelvin Baines Avatar Kelvin Baines

    A big thanks to HMS, Your professional advice and guidance stopped the repossession of my property. I received an eviction notice from my mortgage provider and didn’t know what to... read more

    Andy Miah Avatar Andy Miah

    I am going to write this about this company Richard and Ben before all this happen with my house I was going through a difficult times I buried my head... read more

    Maria Cardoso Avatar Maria Cardoso

    Richard and his team are extremely knowledgeable, professional and very, very helpful. I cannot recommend them highly enough. They helped me to quickly resolve a legal dispute over a... read more

    Donald Scott Avatar Donald Scott
  • Excellent knowledge of the repossession process, this gave me the confidence to proceed and resolve the situation. Would definitely recommend! Customer service was 10/10 too I was quickly reassured and... read more

    Diane Wilson Avatar Diane Wilson

    Spoke to Richard after being told a notice of eviction is on its way. Almost immediately, my anxiety and panic reduced significantly by listening to what had to say. Treated... read more

    Guitar Dummy Avatar Guitar Dummy

    David was professional, knowledgeable and insightful throughout the process. Would definitely recommend to get in touch. Great guy.

    S P Avatar S P

    Amazing and helpful service - David negotiated a solution with the Lender and all resolved with all parties very satisfied

    Justin O'Neill Avatar Justin O'Neill
  • These guys reached out to me and, by giving me good advice, helped to ease my worries at a very vulnerable time. I would not hesitate to use them if... read more

    Julie dowling Avatar Julie dowling

    Great team Richard amazing did all he could possibly do I was a very difficult case - if you want cherry on top look no further best of breed

    Ricky Bonner Avatar Ricky Bonner

    Just to add it was q very professional and clear advice from Richard of Homeowner management regarding my issues With an excellent feedback and assistance in every way Thank you... read more

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    Well here I am after my first decent nights sleep in I dont know how long. 😊 This was only possible because of the support and guidance I received from... read more

    Natalie Scott Avatar Natalie Scott
  • I spoke to David for advice regarding a matter for my mum. David was very helpful and reassuring. The advice given was followed and the matter has now been resolved.... read more

    Waseem Jugon Avatar Waseem Jugon

    So very grateful for information given ,so knowledgeable, Answered so many questions and concerns .Thank you

    Angela Aitken - Smet Avatar Angela Aitken - Smet

    Richard was very helpful Excellent knowledge on subject matter Anyone looking for sound advice,use this company first

    Stephen Parkyn Avatar Stephen Parkyn

    Absolute legends Richard and Ben are!!!. My knight's in shining armour. They are extremely informative and true to there word. They dealt with my issue very effectively and... read more

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  • David was very professional in the advice given, listening and asking questions to understand my situation. There was no hard sell to benefit from the situation I am in. 1)... read more

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    Great service and David was very helpful. Easy to talk to and made sure I was ok all the time he was helping me. After everywhere finally finished ... read more

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    Can't recommend HMS highly enough - Richard was amazing, so knowledgeable, helpful and reassuring - honestly don't know how we would have managed without his advice!

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    I was in the worst possible situation, and felt completely hopeless. I contacted HMS and Richard Harrison took on my case. Straight talking and no messing about; he literally saved... read more

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