10 Ways to Avoid Home Repossession

10 Ways to Avoid Home Repossession

Having your property repossessed is a last resort for any homeowner and, fortunately, there are many ways to stop a lender from repossessing your home. Whether you want to be financially prudent, you’re unable to make your mortgage repayments, or your lender has already started the repossession process, our top tips will help you avoid repossession and enable you to keep your home instead:

#1 Reassess Your Finances

It’s always beneficial to have an up-to-date understanding of your financial situation. Even if your income hasn’t changed, your outgoings may have increased, which will put you under financial stress. As the cost of living crisis continues to push prices up and the Bank of England base rate continues to rise, reassessing your finances on a regular basis is a good way to ensure you’re not living beyond your means.

By recalculating your household budget, you’ll be able to see whether you’re likely to encounter financial difficulties, such as mortgage arrears, in the near future. Most importantly, it will give you an opportunity to restructure your spending so that you can avoid unnecessary debt and stay on top of your essential bills.

#2 Talk to Your Lender

If you’re struggling to make your mortgage repayments or you think you might fall into mortgage arrears in the future, contact your lender to discuss the situation. In some instances, mortgage lenders may offer a repayment plan which will enable you to avoid repossession and clear any outstanding arrears.

Alternatively, your mortgage lender may be able to provide other options, such as taking a payment holiday or suspending any charges from being added to your account.

#3 Get a Better Interest Rate

When your current mortgage deal comes to an end, you’ll have the opportunity to secure a better interest rate. Of course, changes to the base rate will impact what mortgage rates are available, so there’s no guarantee that you’ll be able to secure a lower rate but it’s certainly worth scouring the market to find the best deal out there.

Even if your current mortgage deal has yet to expire, you may be able to switch to a better rate before your deal ends. Although there can be early exit fees to pay, the financial savings you’ll gain by getting a lower interest rate could offset the early exit costs and help you to reduce your monthly mortgage repayments.

#4 Switch to a Different Type of Mortgage

If you’re unable to pay your current mortgage, switching to a different type of mortgage could be a viable way to reduce your monthly mortgage payment and avoid repossession. Switching from a variable rate to a fixed rate mortgage could mean you’ll pay less every month and will give you more stability in terms of knowing exactly how much you’ll be paying each month, for example.

#5 Get Independent Advice

As well as talking to your lender, it’s important to get independent and impartial advice when you’re facing financial difficulties or dealing with the prospect of repossession. The Citizens Advice Bureau offer free advice to those who need it and there are many debt charities that can provide advice and assistance too.

Of course, if you want to know how to avoid repossession of your home, HomeKeep Solutions is always happy to help. With no upfront fees to pay and an experienced team available 24/7, we’re on hand to provide the support you need when you’re facing repossession.

#6 Consider All the Options

You may have a set idea of how you want to resolve your situation but don’t discount other alternatives too quickly. It’s important to consider all of the options so that you decide which solution is best for you and your family.

Selling your home can be a viable way to stop repossession, for example, even if it isn’t your first-choice solution. While there are many ways to retain ownership of your property and avoid repossession, taking the time to consider all the options will give you confidence that you’re making the right decision to try and stay in your home.

#7 Avoid Voluntary Repossession

If you can’t see a way out of your situation, you may be tempted to hand the keys to your home back to the mortgage lender. Known as ‘voluntary repossession’, this means that the lender won’t need to go through the standard house repossession process. However, it can have big disadvantages for the borrower (you!).

When homeowners voluntarily return their property to the lender, the house is still technically repossessed, and the mortgage arrears are still owed. Furthermore, additional costs will be added to the debt when the lender sells the property.

Crucially, your local council may view voluntarily repossession as making yourself ‘intentionally homeless’. If so, they won’t have any liability to help you with housing once you’ve left your home, which could leave you and your family in a precarious situation.

#8 Get a Suspended Court Order

If the house repossession process is already underway, it’s not too late to stop it. When a mortgage lender wants to repossess a property, they must apply for a court hearing to request a possession order.

By asking the court to issue a suspended possession order, you can remain in your home and pay off your mortgage arrears in a structured way. You’ll need to be able to show that you’re able to afford the repayments but, providing you have good evidence to support your position, a suspended possession order can halt the repossession process and enable you to keep your home.

#9 Avoid Being Evicted

Many people are surprised to learn that you can stop an eviction, even if you’ve only been given days to stay in your home. By submitting an N244 form and securing an emergency court hearing, you can have the eviction order suspended and take the first steps to stopping the repossession process.

#10 Contact HomeKeep Solutions

No matter what stage of the repossession process you’re at, HomeKeep Solutions can help. Contact our dedicated team now and find out how to avoid repossession of your home.