How Do You Avoid Repossession of Your Home?

If you are wondering how to avoid repossession of your home, read on. Below, we explain what to do and offer some practical tips. 

Taking Expert Advice

To avoid repossession, professional financial advice is almost invaluable. Even if the lender has already started possession proceedings, an experienced advisor will know how to help at this worrying time. 

When a mortgage is in arrears, it is advisable to maintain communication with the lender and, figuratively, to not bury one’s head in the sand. Above all, beware of the idea of handing the keys back. Take expert advice beforehand; such action severely affects future credit status. 

What Does Arrears Mean?

Technically, loan payments – including those for mortgages on residential properties – are overdue or in arrears from the day after a missed payment. Nevertheless, some lenders allow a grace period of up to fifteen days before contacting the borrower(s) concerned. For some people, this unofficial concession might be enough to get around temporary, one-off cash flow issues. In contrast, if the financial problem is more serious, a two-week breathing space is unlikely to resolve the outstanding amount. 

How Many Months Before Repossession?

Possession proceedings are the official term for repossession. Although lenders are usually entitled to take action from the outset, many of them see it as a last resort. In other words, banks, building societies and other mortgage finance providers do not usually want to initiate legal action unless they have to. In most cases, three months of missed payments are a trigger point, but the delay can be longer. 

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Making Smaller Payments

If you have not already examined your domestic income and outgoings in detail, make time to go through household expenditure with a fine toothcomb. If possible, we recommend making a small payment towards the arrears. Even if relatively small, regular amounts demonstrate reliability. In such cases, lenders will see that owner-occupiers who are encountering financial problems are still acting as responsibly as possible and making the mortgage a priority. 

It is essential to have a workable plan and have it ready before seeing the lender. Significantly, under the terms of an official protocol for mortgage arrears, financial institutions must allow entitled borrowers enough time to claim benefits or mortgage interest support, as well as an option to reschedule the payments. 

Claiming on Insurance

If you have insurance, particularly MPPI (mortgage payment protection insurance), the policy terms might allow you to make a claim. Such insurance policies usually cover redundancy, accident or illness, although sometimes there is an initial waiting period depending on the insurer and the cover options originally selected. 

Changing the Monthly Payments

You might be able to change the type of mortgage or the number of years that it has left to run. However, this change is usually easier to achieve before an account goes into arrears. Alternatively, some types of mortgage allow the mortgagor (i.e., the borrower) to take a payment holiday. 

Obtaining Support for Mortgage Interest

For those who are entitled, government-run mortgage interest support covers the interest part of monthly payments. Previously a benefit, the amounts received are now, in effect, a loan that the state recoups on the eventual sale of the property. SMI is available after 39 weeks, or straight away for people who receive pension credit. 

Additionally, it is a good idea to find out about possible entitlement to other state benefits and tax credits. Any new source(s) of income will lighten the load, increase general household income and help to balance the monthly budget. 

Renting Out or Selling the Property

If there is other accommodation in which you could live, renting the mortgaged property out could be a feasible proposition. However, some banks and building societies charge higher rights of interest when tenants live in mortgaged properties. 

Instead, a quick sale may prove to be the best option overall. Depending on your housing needs and if circumstances permit, this option could lead to a better outcome over time – even if it involves some inconvenience at first. By selling, technically, you would not have defaulted on mortgage payments, or at least for long. Maintaining some control is advantageous; sales by owner-occupiers tend to secure better selling prices than forced disposals at public auctions. 

Getting Additional Help

For those who are entitled, legal aid provides subsidised professional support. Other alternatives include free advice and information from:

  • Local councils.
  • National Debtline.
  • Citizens Advice.
  • Shelter.
  • The site.

Finally, if and when lenders initiate repossession action, they have to adhere to the terms of the mortgage arrears protocol. In particular, they must keep borrowers informed and grant them an opportunity to put the situation right.

Eviction Notice Help

We help save your home by stopping your eviction, helping you clear your arrears negotiating with your lender.

What people have to say about Home Owner Management Services

Thank you so much for your help. We can now keep our home for the long term. We now have to pay our Lender a monthly payment we can finally afford after a year of turmoil. The hardest thing was unpacking all the boxes we had already packed because we thought there was no hope.

Everything you did for us was so quick and professional, our home was saved before we knew it, it took some time to sink in, but they really did achieve what we thought was impossible. In less than 24 hours of phoning them the eviction order was cancelled.

With the weight off our shoulders we can concentrate on living again and earning the money we need to pay the mortgage without living in fear of the Bailiff knocking on the door with an eviction order!

Mr & Mrs J W
I was at a total loss at what to do with my situation, having been a mortgage broker, I was convinced I had the ability to talk to my lender and negotiate however; nothing I could offer was good enough!

They explained the process to stop the eviction and when it all came together it was like a case of De Ja Vu, it went EXACTLY as they said it would. They got me enough time to save up my deposit to go and rent, and I just let the lender have the house because I had negative equity anyway.

I am now back to a comfortable state of living and have no stresses anymore. I didn’t have to borrow any money from anybody because I didn’t have to pay the mortgage while I was saving up for my rent.

The best part was having the ability to remove my belongings at my own pace, and it not being done for me! I didn’t need to arrange storage or anything. I cant begin to express how grateful I really am!

Mr L

I really can’t thank you guys enough. I was certainly headed for another breakdown, however, the sheer weight of your support saved me from despair and I am sat at home nice and  warm, in familiar surroundings thanks to you.

I can’t believe, looking back, how much time I wasted trying to convince the lender to let me stay, so many documents and offers, my only regret is honestly not phoning you sooner.

Mrs M

I really had my head in the clouds as I believed I now had no where to turn. I had already made my appointment with the council to assess me for emergency housing. However my council said they could only find me a hostel to stay in. 1 call to Aggressive Lender Solutions and I no longer had a problem.

They resolved the Eviction order in a matter of days, giving me every confidence that they could achieve it, every step of the way. I don’t know where Id be if they didn’t help.

Mr B

It is never too late to contact us, even if your eviction is only an hour away. Call 0800 298 0571