Repossession - Stopping it from happening
What is Repossession?
When applying for a mortgage you will normally sign a document called a "legal charge" or "mortgage deed" which will say that if you do not keep up the repayments on the loan the lender can repossess your property. When you are unable to make the monthly mortgage repayments your mortgage becomes in arrears. If you cannot propose a plan to repay the amount owed the lenders can start possession action in the county court which can result in you losing your home.
Many homeowners have difficulty in paying their mortgage payments. This could be due to a number of reasons i.e. redundancy or unexpected financial emergencies. If you have problems and your mortgage is in arrears (you are behind with monthly payments) you need to act now to prevent repossession of your property. In many cases repossession can be stopped or delayed, even if your lender has called in the bailiffs.
Repossession Advice
My lender is trying to evict me, what should I do?
As a home owner, you can only be evicted if your lender can prove a legal reason and the correct procedure is followed. Repossession of your home is a last resort for most lenders. They would prefer to sort out your payment problems in other ways however your options are likely to be restricted.
Your options will probably depend on:
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What type of mortgage you have
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How far behind you are with payments
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The reasons for your arrears (i.e. redundancy)
The most important point at this stage is to deal with the problem immediately. Do not try to ignore letters or phone calls from your lender or your lenders solicitor. This behaviour will only increase the likelihood of them taking you to court as they will assume that you have no intention of sorting out the problem and leaves them with no other option. If you need specialist advice on how to respond to this contact, visit the housing aid centre or citizens advice bureau. They may be able to help you come up with a proposal to control your arrears and keep your home.
I am facing repossession, how can remortgaging help?
If you are facing repossession you may be able to avoid losing your home by remortgaging. Remortgaging involves switching your mortgage from your current lender to a lender who offers a better deal which could potentially save you a great deal of money long term and save your home. Specialised lenders will offer you a deal that is more suited to your immediate needs for example, the chance to pay off your mortgage arrears. If you can prove that you can manage your payments and get your mortgage up to date, your home will be safe from repossession. You will usually need a small deposit or small amount of equity on your property to be accepted however this varies between lenders and specialist lenders may be more flexible.
Please note that if you are facing repossession you will almost definitely have a poor credit history that will go against you when applying for mortgages. This means that you should only apply to lenders who specialize in adverse credit/ bankruptcies/CCJs as they are more likely to accept your application.
Get a Quote from Remortgage Companies that can help Stop Repossession:
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Fill out the simple – no obligation form
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Wait for qualified advisors to get in touch and discuss your personal circumstances.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The actual rate will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The fee will normally be 2% of the mortgage advance, minimum of £950 and a maximum of £3000.The fee can usually be added to the mortgage amount.
Enable Finance Ltd. is authorised and regulated by the Financial Services Authority for mortgages and non-investment insurance. Buy-to-Let mortgages are not normally regulated by the Financial Services Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE