Understanding UK Mortgage Repossession Jargon: A Guide for Homeowners

Facing home repossession can be overwhelming, especially when confronted with a barrage of legal terms and jargon from mortgage lenders and their solicitors. 

Here’s a list to help understand some of the key terms involved in the UK home repossession process:

1. Arrears: This term refers to the amount of missed mortgage payments. Lenders often initiate repossession proceedings when homeowners fall into arrears.

2. Possession Order: A court order that allows the lender to take possession of the property if the homeowner fails to meet the terms set by the court.

3. Forbearance: An agreement between the lender and the homeowner to temporarily reduce or suspend mortgage payments.

4. Eviction: The legal process of removing occupants from a property. This occurs after a Possession Order has been granted.

5. Repayment Plan: A structured agreement between the homeowner and the lender to catch up on missed payments over a specified period.

6. Bailiff: A Bailiff (these days known as enforcement agents) have legal powers to collect debt. Usually employed by the local council,they can be appointed to enforce the eviction if a Possession Order is granted, ensuring occupants vacate the property.

7. Repossession Hearing: A court hearing where the lender presents evidence for repossession, and the homeowner can state their case.

8. Equity: The difference between the property’s value and the outstanding mortgage. Positive equity can be used to settle debts, while negative equity may complicate the repossession process.

9. Consent Order: An agreement between the lender and homeowner approved by the court, outlining specific terms to resolve the arrears.

10. Redemption Period: The time given to homeowners to repay the arrears and prevent repossession after a Possession Order is issued.

Remember, seeking professional advice and understanding these terms can empower you during the home repossession process. If you have specific questions or concerns, it’s advisable to consult with a legal professional specialising in property law.