How Many Missed Mortgage Payments Before My House Is Repossessed?

How Many Missed Mortgage Payments Before My House Is Repossessed?

Many homeowners worry about their property being repossessed, particularly if their financial situation changes. If you’re struggling to pay your mortgage, it’s important to understand whether you’re close to repossession and, if so, what your options are.

By taking control of the situation and being proactive, you can increase the likelihood of being able to stay in your home and avoid repossession altogether.

When Will My Property Be Repossessed?

Mortgage lenders can only repossess a property as a last resort, so it doesn’t happen the instant you miss a payment. Instead, the lender must advise that you seek independent debt advice and provide an up to date statement of your account, so you can see exactly how much you owe.

Of course, you don’t need to wait until you’ve missed a mortgage payment to make contact with your lender. If you’re experiencing financial difficulties and you think you’re likely to miss mortgage repayments in the near future, it can be beneficial to initiate contact with your lender now.

This gives you an opportunity to resolve the situation without getting into arrears and without your credit rating being negatively affected.

How Many Missed Mortgage Repayments Before Repossession UK?

Generally, mortgage lenders won’t start the repossession process until you have missed three mortgage repayments. Once you’ve missed three payments, the lender may follow pre action protocol and initiate court action.

This involves the lender asking the courts to grant a possession order, so that they can evict you from the property and sell your home to recoup their losses. However, there’s no need to panic as there are many ways to stop the repossession process.

Are You Entitled to Financial Help?

Many people are unaware that they’re entitled to financial help, which means they’re missing out on support they’re eligible to receive. If you can claim Universal Credit to top up your income, for example, this may enable you to make your mortgage repayments each month and prevent your property from being repossessed.

Alternatively, you may be able to apply for a mortgage interest SMI loan. ‘Support for Mortgage Interest’ is a government-issued loan that’s designed to help homeowners who are experiencing financial difficulties and who are struggling with mortgage costs.

Although ‘Support for Mortgage Interest (SMI)’ is technically a loan, it only needs to be paid back when you sell or transfer the property, or upon your death. If your application is approved, the loan is used to pay the interest on your mortgage, which can significantly reduce the amount you personally need to pay each month.

“I’m In Mortgage Arrears – Can I Avoid Repossession?”

Absolutely. Even if you’re already in mortgage areas, HomeKeep Solutions can help you to avoid repossession and enable you to stay in your home.

Our team of legal experts has in-depth knowledge of repossession law, mortgage regulations and the court process, which ensures we’re well-placed to provide the comprehensive advice and support you need.

Negotiating with your lender is the first step to setting up a repayment plan and avoiding repossession proceedings, but this isn’t always easy for homeowners to do. Mortgage lenders may be more receptive to professionals when it comes to negotiating repayment plans, so why not let our experienced team handle this on your behalf?

Can Repossession Proceedings Be Stopped?

If you’re already at least three months in arrears and your mortgage lender has started repossession proceedings, it’s easy to assume that it’s too late to save your home – but this isn’t true!

It’s possible to stop a repossession at virtually any time, even if court action has been initiated or an eviction order has been made.

When your mortgage lender asks the court to issue an outright possession order, for example, you can counteract this by requesting the court issue a suspended possession order instead. If you’re successful, the court will set out a workable repayment plan that will allow you to clear the arrears and you’ll be able to remain in your home.

Should You Sell Your Home to Avoid Repossession?

Selling your house can be a viable way to avoid repossession but it isn’t the only option out there. If you don’t want to sell your house, then you shouldn’t feel forced to do so simply to stop the repossession process. Instead, there are other ways to prevent repossession, such as negotiating with your lender, securing a repayment plan or getting a suspended possession order.

With so many ways to save your property and remain in your home, you may want to pursue these options before you consider a quick sale to resolve your financial difficulties. After all, your home is likely to be your biggest asset and protecting it should be a top priority.

To learn more about stopping repossession or to find out how we can help you stay in your home, contact the HomeKeep Solutions team now.