What Is a Voluntary Surrender Repossession?

What Is a Voluntary Surrender Repossession?

If you are facing repossession from your mortgage lender and wondering what your options are, you may have come across the term ‘voluntary surrender repossession’. This phrase describes when a homeowner hands back the keys to a property to the lender of their own volition before a full repossession is put into action. The guide below explains more about what it means and the overarching consequences.

What Triggers a Repossession Court Order?

The only time a repossession court order can be triggered is if a homeowner has failed to pay their mortgage for three consecutive months or more. After this, your lender will begin court proceedings to remove the property from you and reclaim their debt. If this is put into action, you will always receive an official notice from the court and you should take this seriously. There will be an opportunity at the hearing to defend your position, but the court will ultimately decide what will happen with the property unless you do something before the date to stop it yourself. There are ways to work around a repossession order, and here at HomeKeep Solutions, we understand the better paths to take.

Explaining More About a Voluntary Surrender Repossession

You have the option to voluntarily surrender the property. If you opt for this, your lender will then go on to sell the property to recoup the monies they have lost from the missed mortgage payments. There are a few negative repercussions to keep in mind if you are considering this option. HomeKeep Solutions can talk about all of the options in front of you so that you are making the best decision possible for your future because, the fact is, this is not always a great option and can even put you in a worse position housing wise once it is all over and done with.

Housing Support

There is a tangible risk that the place that typically offers housing support for someone facing homelessness would withdraw it as a result of you entering a voluntary surrender repossession. They would most commonly argue that you have made yourself homeless of your own free will, and this will reduce the amount of support there is after it takes place.

Lost Value

The majority of properties that are sold through this method go to auction because they are in negative equity, so this is the only viable option for a lender to consider. What this means, ultimately, is that they will be sold at a lower price than you would achieve through a regular house sale route. So, while you may pay off the debt and even receive a sum should there be a balance to speak of, you will never see the amount you could acquire should you go down a different path, like applying for an extension.


If you claim benefits, these may be stopped completely as a result of the money you receive after the sale takes place. This will make it difficult to reapply and for anyone relying on this as a way to live during the month, this is not a great situation to be in.

What Are the Consequences of Voluntary Surrender?

HomeKeep Solutions works hard to provide alternatives to voluntary repossession to enable you to stay in your property and regain control of your financial future. There are very few circumstances where voluntary surrender is the best option. Instead, selling your home of your own accord is one option as long as you have the right paperwork to back it up, and it will look better to future lenders should you go down this path, for example. If you can no longer make payments, you do have options; it is just a case of figuring out what they are and how you want to proceed. The main consequences are that you will see this action affect your credit and leave a somewhat long-term effect on any credit scores you have worked hard to build.

What About Payments?

If you enter into this arrangement, then your mortgage payments will be ceased with immediate effect. However, one thing you will still be liable for is the interest payments, which are like extra charges a lender makes in order to make a profit on the loan term agreement. These arrears can build up too, and you will still have to pay them back even if the house sells, which may take a chunk out of anything you receive and make it even harder to secure new housing in the future.

Can a Repossession Order Be Stopped?

If you don’t pay your mortgage, perhaps because of a higher interest rate after the end of the fixed term contract, you will be faced with repossession action. Whether or not that can be temporarily stopped depends on how you engage with the process. Sitting back and doing nothing is not an option because the only consequence of this is that your property is sold and taken away from you. Talk to our team and see what can be done, because the choices may surprise you. Lots of people have managed to stay in their properties thanks to our help and input, and there is always something to be gained from having a conversation.

Is It Really Worth It?

It’s a big question to ask, and the answer is ambiguous. There are some situations where it may feel like the only option, but the truth is that there should always be another way that doesn’t mean someone has to leave their home because they are facing financial difficulties. If you want to stay where you are comfortable, and protect both your asset and your credit rating, then do not hesitate to pick up the phone and get in touch with us.

A voluntary surrender repossession is a certain type of legal agreement where a person in mortgage arrears hands back the keys to their property to the lender. Once this is done, it cannot be undone, and you will lose the house forever. There are other ways forward, and getting advice is the only way to figure it out. Call 020 3761 7111 today and get expert help.