FAQs about Litigation & Disputes

TOP 10 TIPS TO AVOID REPOSSESSION

In order to avoid repossession it is essential to:

1.            Contact your lender as soon as you encounter any problems with your mortgage payments in order to negotiate the terms which may allow for keeping your property.

2.            Discuss with your lender if you can:

  • Have a payment holiday for a few months
  • Capitalise your arrears which means adding your arrears to your mortgage loan
  • Arrange instalment payments

3.            Use Homeowners Mortgage Support (HMS) scheme to delay payments of the interest on your mortgage

4.            If you increase your mortgage term, it will give you more time and will decrease your monthly repayments. The only disadvantage is that you will pay out more the long-run.      You can rent out your property and live somewhere cheaper. However, the mortgage agreement often includes a term which prevents doing this. If this does not work out, you can rent a room in your house.

5.            Selling your property is another way of getting out of the debts

6.            Get the advice from your lender if you can transfer to an interest-only mortgage.

7.            If your matter goes before court, ensure that you are there as you may still have a chance of keeping your home.

8.            Do not give your keys back as this will not resolve your financial issues.

9.            Contact your local authority to check if you can claim any benefits that may help you. Furthermore, do not get into more debts, i.e. more loans.

10.          Speak to a legal representative before going to court. This will give you a chance to prepare for your case, and look at your financial situation in detail. You can contact

If you are not prepared for your case in advance:

  • Ask for a free legal advice at court
  • Ensure that you are familiar with the facts and your financial situation before coming to court.
  • Have all documentation ready, such as any communication with your lender, and details of your salary in order to show the court what you can actually pay.