How to Stop a House Repossession in the UK
Even the thought of a repossession can be frightening. It’s enough to keep anybody up at night and there is enough to worry about in life without losing your home.
If you are worried about your house being repossessed, then worry no more – our team will help guide you through the process of avoiding this unfortunate outcome.
How Do House Repossessions Actually Work?
If people are unable to pay their mortgages any longer, then the lending bank can take possession of this property. This means that any equity in the property is lost and the property owners credit rating can be affected depending on actual steps taken. It is always advisable to let your mortgage company know as soon as possible that you are struggling with repayments.
If you are still struggling and your lending bank will not allow for any delayed payments, then please contact us immediately. We work with excellent solicitors and they will start taking action to avoid the repossession straight away. Once our solicitors have started work and understand that we will be stepping in to buy the property, positive progress can be made to stop the repossession. We will buy the property and settle the debt meaning that you can have a fresh start.
Every day counts when it comes to repossession, so please do not delay contacting us.
How Many Payments Do I Need to Miss Before the Repossession Starts?
Proceedings usually start after three missed payments have taken place. However, do not rely on this timeframe and rather communicate with your lender without delay. Most lenders will appreciate the communication and act less negatively than you might think. This doesn’t mean that you are off the hook, but rather that you have at least informed your lender of what is happening.
Beyond this, please contact us straight away too so that we can help you set out a positive plan. The longer you delay contacting us and your lender, the worse the situation will get. Don’t bury you head in the sand. There is a way out that can actually result in you walking away with some money and looking forward to the rest of your life.
How Can I Avoid Repossession in The Future?
The first task is to learn your lesson. Make sure that you better organise your finances and that you are continually on top of making rent and/or mortgage payments. Also avoid taking on more debt through expensive credit cards. Further to this, it is also helpful to get advice from a qualified Financial Advisor. Someone to help you set out a plan to live within your means and avoid the same mistakes happening again.
If you are unable to afford a Financial Advisor then there are plenty of free resources available, such as The Citizens Advice Bureau and other free platforms. Even financial planning videos online are free and are helpful. Ultimately, don’t spend more than you earn each month.
Where Can I Seek Advice in Terms of My Financial Situation?
There are a number of free helpful services available:
What Happens If I Cannot Avoid A House Repossession?
If you’ve not managed to stop house repossession after your home has been repossessed it doesn’t necessarily mean you’re out of the woods, which is why it’s important to sell your own house whilst you still have control.
If the repossession goes through your lender will look to sell the property and recoup their losses on the mortgage, they will try and sell the property which they typically do by auction. In doing so they will incur legal fees, auction fees & lose money over the duration of the sale, all of which you will be liable to cover, and the amount of this can seriously rack up.
This can sometimes be covered by the equity you have in the property or if property prices have increased and they get a good price for it, but ultimately you need to repay what you owe the lender.
If you are in control of your own sale, it means that you won’t have to cover all the fees the mortgage company would incur which will mean that you’re likely to be left with a lot more of the equity to yourself.
Can I Sell My House Even If I Am Behind on Mortgage Repayments?
Simply put the answer is yes, you can sell your house with mortgage arrears. If you’re a homeowner that has unfortunately fallen into arrears then you will have an outstanding debt with the mortgage company but selling your home can help with this and is one of the best ways to stop house repossessions. Selling your property is likely to release a significant sum of equity, as long as your property has risen in value or you’ve been making mortgage payments for months/years prior to the recent struggle, then the sale of your property should generate some extra money which can be used to clear any of the debt you have accumulated.
If you start to fall into arrears, selling your home can be a good way of paying this off, if you are unable to work something out with the mortgage company. It’s best to act quickly before repossession proceedings begin, in order to give yourself enough time to sell your property, depending on how long down the line you are with your arrears, you may need to seek a quick sale, which is something we can help with.
Will I Be Able to Get A Mortgage After Repossession?
If you don’t get repossessed and manage to sell your property before having this mark on your credit file then yes of course it will be easier to get a mortgage than if you go through the repossession process. It isn’t impossible to get a mortgage if you have had a previous repossession, it’s just much harder.
It’s important to understand before you apply for a mortgage how they will assess you after a repossession, some mortgage companies will be easier to get accepted for than others with stricter criteria.
Other factors that will affect how easy it is to get a mortgage after a repossession
How long since the repossession:
The longer it has been the more likely you are to get a mortgage; over time your credit score should hopefully improve.
The amount of deposit you have:
Lenders may expect you to have a much larger and significant deposit to put down if you’ve had a previous repossession, this minimises their risk in lending to you as it means there is a lot of equity, they could recoup should you fall into mortgage arrears again.
The amount of your repossession debt:
If you were repossessed owing millions of pounds, then you are obviously going to be higher risk for a lender than someone who was repossessed based on just a few thousand. They’ll investigate this when deciding whether they should lend to you.
Your current credit status:
A repossession is likely to hit your credit file pretty hard, you need to work on building it back up. If you’ve had issues with a CCJ or IVA then this might also make things a lot harder, but the more years that pass the less of an effect they have.
What happens to my mortgage debt after repossession?
Speak to your lender if you have any specific queries regarding your arrears. Each lender is different so they will be able to talk to you about your individual case. If you sell your house via a quick cash buyer then part of the lump sum, you’ll receive will pay off your debt and the rest is yours to keep.
Does my house being repossessed impact my credit rating?
Yes, because you have defaulted on payments. You will have to work towards boosting your credit rating if you want to get a mortgage or loan again in the future.
How long does a house repossession take?
Around 28 days, but the judge could stretch this to 56 days depending on your circumstances. The court order will let you know the exact date you are expected to leave the property, as decided by the judge. A possession order will be granted if the judge decides that your home should be repossessed.
Can I get my home back after a repossession?
Well, technically you can buy the house back off the mortgage company who are selling it. You would however need to cover all the costs involved and incurred by the mortgage company during putting the house up for sale & also cover any of the arrears you are in.
Get in Touch with Serene Homes
At Serene Homes, we’re passionate about helping people like you avoid repossession of your home. Contact the team for guidance through the process of how we can help or call us on 0800 048 5392 if you have any further questions.