Your home is your sanctuary, the hub of your family, and the source of countless happy memories. Unfortunately, financial difficulties can strike anyone at any time. When circumstances make it impossible to maintain mortgage payments, your lender will take notice, triggering a chain of stressful and potentially disastrous events. In some cases, repossession may be an option. The good news is that you have several choices available to prevent your home from being repossessed.
Don’t panic about the situation.
If you want to keep your home and avoid eviction, you must maintain your cool. Obviously, you must act quickly, but keep in mind that your lender will not begin the repossession process right away and that court proceedings will take weeks, allowing you valuable time to find a solution and potentially prevent your home from being repossessed.
Before taking legal action, the lender may attempt to negotiate a mutually beneficial agreement. Additionally, the lender is required by law to follow a protocol before taking legal action against you and to provide you with a written warning or repossession notice at least 15 days in advance. Therefore, when threatened with repossession, don’t panic; you have options.
Know how house repossession works in the UK.
Knowledge about UK repossession practises, and your responsibilities and rights as a borrower cannot be emphasised enough. Understanding the procedure’s possible outcomes will enable you to take appropriate measures to prevent repossession. If you don’t respond to your lender’s communication about missed mortgage payments, or if the lender isn’t happy with how you plan to cover your arrears, they may take you to court.
Be in the know on how to stop repossession
There are several ways to avoid receiving a repossession order from the court; Work out an arrangement with your lender and stop repossession immediately. Consider the following options:
- Taking a mortgage payment holiday allows you to pause or reduce your monthly payments for a specified period.
- Obtaining a new mortgage with more affordable monthly payments.
- Extend the term of your mortgage, thereby reducing monthly payments to a manageable amount.
- Capitalise the arrears or make a payment toward them to demonstrate that you are attempting to improve your situation.
- Consider switching lenders to obtain better mortgage terms.
Speak to your lender.
You are in arrears as soon as you miss a mortgage payment. If you cannot pay or fail to meet subsequent repayment demands, they have the right to initiate property repossession proceedings against you. It is therefore strongly advised to respond to calls and repossession notices as soon as possible. Keep the communication lines open, and don’t avoid calls or emails.
Get expert advice.
Expert advice can be costly, and if you have been threatened with repossession, you most likely do not have additional funds to hire financial advisors or solicitors. Contacting an expert or simply seeking their advice can help prevent repossession. Furthermore, you may be eligible for free legal advice or assistance with legal fees. Check here https://www.gov.uk/check-legal-aid to see if you qualify for legal aid.
Consider selling your house quickly.
If you’re unable to maintain your mortgage payments and your financial situation is not expected to improve, selling your home fast may be the only way to avoid or stop repossession. Although it is probably not ideal, selling your home yourself is preferable because you will most likely get a higher price than your lender at an auction.
Selling your home through online or high-street estate agents is one option. However, if you’re up against the clock, this could be stressful because the average time to sell can be six months or more. You can also use a company like ours, which buys any house quickly for cash. The sale can be completed in 7 to 28 days, allowing the arrears and mortgage to be paid off and the repossession process to be halted.
All you’ll need to do is agree on a price to sell your house based on its value. We’ll handle everything else, including instruction and paying your legal fees! If you have equity in your home, any proceeds from the sale will be used to clear off your mortgage and any mortgage arrears you have accumulated. The remainder is money in your bank for you. Contact us for help you avoid repossession and pay off your mortgage.