The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Credit card map of Britain revealed - what do people in your area look for?Derbyshire TimesDan Plant, editor-in-chief, MoneySuperMarket, said: “Credit cards can help you save money when managing debt, borrow new funds, build your credit rating or earn rewards for spending. However, you need to select the right type of plastic, and then use ...
This is MoneyCould a lifeline for older borrowers unable to repay interest-only mortgages be about to arrive?This is MoneyAn interest-only mortgage time bomb has been ticking for several years now and there are fears it's about to go off. We've known trouble has been coming since about 2008, but the City watchdog is now so worried about the number of people at risk of ...and more »
The SunWhat does Toys R US' bankruptcy mean for customers in the UK?The SunYou could also use a 0 per cent credit card, which will allow you to spread the cost of your Christmas purchases without being charged interest. And of course - you could always save up the cash and buy presents that way too.and more »
The GuardianPublic inquiry needed into UK's £200bn debt crisis, say senior MPsThe Guardian“Debt is a huge emotional burden for people,” said Nicky Morgan, the Conservative MP who chairs the Treasury select committee. She added that “unstable personal finances” often emerged as problems raised by her constituents in Loughborough.
The GuardianCar finance: the fast lane to debt?The GuardianWhile credit cards and personal loans make up the bulk of a £200bn debt mountain accumulated by British consumers, car finance has seen the fastest expansion. The second most expensive purchase in the majority of people's lives, after buying a home, ...and more »
Have you met...
Latest Members:


John Morteen


cheaplingerie


femto


hoowei


hejian


Jensen Breck


Xuwanghuan

 

Factsheets

Email this story to a friend:

Facing Repossession?


Are you facing the prospect of being homeless? You and 144,999 other households by the end of the recession if figures from the Centre for Policy Studies turn out to be accurate.14-05-2009
It also calculates that another 245,000 households could have repossession orders against them by then even if they’re still living in their homes.

If your lender insists on repossessing your home it will have get a court order. It can’t just walk in, turn you out and change the locks.

So how does it all work? A mortgage is a loan secured against the home it’s used to buy. When you took out your mortgage you agreed to repay your loan, and interest on it, or interest only, in monthly instalments over a certain number of years. If you can’t make those payments - because someone loses a job, gets ill or pregnant, or there’s a divorce or separation - the lender has the right to ask a court to allow it to take possession of the property and sell it to recoup its money.

The government wants lenders to repossess properties only as a last resort. It has also come up with the Homeowner Mortgage Support Scheme where lenders and borrowers come to an agreement that allows the borrower to defer interest payments on their mortgages for up to two years. So if you’re in arrears and facing the threat of repossession you must talk to the lender and try to come to an agreement.


Don’t wait.

Work out exactly what you have coming into the household and look for ways to increase that income while you’re out of work.

Check whether you’re entitled to any job seeker’s allowance or income support and help with the mortgage and council tax.  

Check whether you have a Mortgage Payment Protection Policy that may cover your mortgage ‘til you find another job.

Look at all your spending and find to reduce it.

To avoid repossession you need to persuade the lender to restructure your mortgage so that you have lower monthly repayments which you can afford. You may also need to pay a little off the arrears each month to clear the back log in reasonable time.  

If you aren’t successful in your negotiations with a lender ask the local Citizens Advice Bureau or the National Debt line (0808 808 400) for help.

If the lender does start court action will be up to the judge to decide what happens.  

If you have a date for a court hearing don’t miss it. Someone from the local CAB may be able to help you prepare.

Take all the details of your income, bills and spending with you. Work out how much you can afford to pay.  

The judge can decide in favour of the lender and grant the repossession order; can grant the repossession order but suspend it while you make agreed payments; can postpone a decision or adjourn the case while you and the lender go back to the negotiating table or grant you a ‘stay’ of execution - that is stop the repossession temporarily to allow you more time.

Don’t panic and hide letters from the lender behind the clock. Get help now and you may still be in your home come the end of the recession.

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks