The danger of home repossession makes it important that you are well-informed about this subject.
You may be wondering what exactly a repossession is, and whether it can be reversed once an application has been made.
We’ve answered both questions, and a couple more, in the blog below.
What is a house repossession?
A house repossession is when your mortgage lender starts the legal process of reclaiming your home, typically because you are behind on mortgage repayments.
Most mortgage lenders leave this as a final option.
Of course, a lenders tolerability for missed payments may vary.
Once a mortgage lender has decided to repossess your property, they will make an application to the court.
This application will typically provide details of:
- All your missed payments
- The total level of arrears
- Total amount of money you owe.
If a decision is made by the court to carry it out, all involved must respect your rights throughout the process.
How common are house repossessions?
According to data from the Ministry of Justice, there was a total of 733 homes taken into possession between October 2022 and December 2022. There was also a total of 3,160 applications for possessions made by lenders during this time.
Overall, the commonality of house repossessions may fluctuate according to interest rates, inflation, and the cost of living. After all these all have a direct impact on homeowners’ ability to meet their mortgage repayments.
While this number may seem small in the grand scheme of things in the UK, you should notice that the numbers of applications is much higher.
Lenders will do this to put pressure on you to make your repayments – but there are still steps you can take to stop a house repossession from going through.
Can house repossession be reversed?
You can stop a house repossession in the UK using something called an N244 form.
This is used to ask a court to cancel an order to repossess your property – and it will require the judge to look at the details of your case, and potentially schedule a hearing.
When submitting an N244 form, you will have to demonstrate that you have a repayment plan for the remaining mortgage amount.
However, you should apply for a court hearing at least 3 days (but preferably more) before your eviction date, because if you submit the form too late, you may be evicted while at court.
If you want to get hold of an N244 form, then you can download it for free from the UK government website. However, to make an application on notice, you will typically have to pay a fee of £275.
It is highly recommended that you find a legal expert who can support you with the completion of this form. Although it may seem simple at first glance, you should remember that there is a lot at stake.
Can I get a mortgage after repossession?
Yes, it is completely possible for you to get a mortgage after repossession in the UK.
However, it will make the process of doing so more difficult, because any future mortgage lenders may consider you a ‘risk’.
This will likely result in them increasing their interest rates, or asking for a larger deposit, to compensate.
Furthermore, the more time that has passed since the repossession took place, the more likely you are to be successful.
When you make your new application, you will be asked about your affordability. The lender will also expect that any previous mortgage shortfall has been paid off.
You’ll also want to ensure you have rebuilt your credit level to a respectable score.
Do you need help with selling your house fast due to repossession? As cash house buyers, We Buy Any Home will help you to sell house fast with no hidden fees.
