What exactly is the home repossession process?

The first step is when missed payments start occurring and this is where the lender will fire an “early warning” so to speak, in the form of a letter reminding you of your agreed obligations and that you need to get back on track with payments.

If payments continue to be missed, the lender will issue a Notice of Default. This formal notice is a warning that legal action may begin if the debt is not paid. This is when you should seek advice from a debt advisor or a solicitor.

Court action follows if the situation doesn’t improve, as the lender will seek a possession order application, meaning you will receive a notification for a court hearing date and will be advised to attend. At the hearing, both you and the lender get the opportunity to present your cases. 

The court may allow you to stay in the property under certain conditions (e.g., adhering to a new payment schedule), or could give the lender possession of the property, usually within 28 days.

If you fail to leave the property by the date specified in the outright possession order, the lender can apply for a warrant for eviction, meaning you will receive an eviction notice specifying when bailiffs will arrive to remove you from the property.

There are however, options that can avoid repossession and one of the most common is selling the property quickly, possibly at a reduced price, to stop the repossession and clear the mortgage debt.

If you’re experiencing mortgage arrears, consider reaching out for professional advice as soon as possible. Early intervention can provide more options and potentially avoid the stress of repossession.

Understand the repossession process, know your options and keep your home. Download our Repossession Help Guide.