What are the legal rights of homeowners when facing repossession?

Facing home repossession is a stressful and challenging situation, but knowing your legal rights can make a significant difference in managing the process. When you miss mortgage payments, lenders will first contact you to discuss the situation and possible solutions. If no agreement is reached, they will issue a Notice of Default, which can lead to court action for repossession.

As a homeowner, you have several legal rights during this process. You have the right to legal representation in court, which can greatly increase your chances of avoiding repossession. Many homeowners can negotiate payment plans or other solutions with their lenders, even at this stage​ (GOV.UK)​​.

Before taking you to court, your lender must follow specific protocols. They must provide you with detailed information about your arrears, including the total amount outstanding and any charges added. They must also consider any reasonable suggestions you make to deal with the arrears, such as delaying interest payments, extending the mortgage term, or switching the type of mortgage​​. The Financial Conduct Authority (FCA) ensures that lenders treat you fairly and only pursue court action as a last resort​ (Shelter England)​.

If your case goes to court, the court can delay the proceedings if you can demonstrate an ability to pay the arrears within a reasonable time. The court will also check if the lender has followed all the necessary pre-action protocols. During the hearing, you can present your case and the court may issue a suspended possession order, allowing you to stay in your home as long as you meet certain conditions​.

Moreover, the UK government has launched a new service providing free legal advice to people facing repossession, ensuring they get the support they need from the moment they receive a written notice. This service aims to resolve issues early, helping people keep their homes and avoid lengthy court proceedings​ (GOV.UK)​.

Understanding these rights and taking prompt action can help you get through the repossession process more effectively and increase your chances of staying in your home. If you’re facing this situation, it’s crucial to seek legal advice and communicate openly with your lender to explore all possible solutions.

Got a question? Click here and reach out!