What Happens Next?
If and when a lender decides to initiate action, a protocol for mortgage arrears applies. Lenders have to follow an approved procedure and keep the mortgagor i.e. the borrower(s) fully informed. Additionally, the bank, building society or mortgage house must provide an opportunity to put the situation right before any repossession action starts.
Nowadays, lenders do not knock on the door at the outset. Typically, a sequence of standard letters warns of the situation and the possibility of action. In accordance with the accepted standards, borrowers have a fortnight to respond to such communications. Eventually, however, if the arrears remain uncleared, the lender will likely warn that they intend to apply to the relevant county court for a possession order.