Can I stop my home being repossessed?

A repossession claim is the start of a process, not the end of one. Courts have broad powers to keep you in your home if there is a realistic plan for the arrears, and lenders have to clear several hurdles before they get that far.

Before court: engage early

The FCA’s MCOB 13 rules require lenders to treat customers in financial difficulty fairly and to consider forbearance before repossession. Under the Mortgage Charter, major lenders commit to options such as a payment holiday, a temporary switch to interest-only, or a term extension — and to at least 12 months from the first missed payment before repossessing. Many of those options depend on telling the lender before you miss payments, so make the call early.

The Pre-Action Protocol for Mortgage Possession Claims requires the lender to take specific steps first — discussing the arrears, considering proposals, and giving notice. Failures can lead to costs penalties or the claim being struck out, so check what was actually done.

At the hearing

• Attend. Free advice is often available from a duty adviser at court, and orders are far more likely to be suspended where the borrower turns up with figures.
• Take a completed income and expenditure statement and propose paying the normal instalment plus a realistic amount off the arrears. Under section 36 the court can then suspend or postpone possession.
• For regulated credit agreements, ask about a Time Order under section 129 of the Consumer Credit Act 1974, which lets the court vary the amount and timing of payments.

Orders come in two forms: outright, requiring you to leave by a set date, and suspended, letting you stay while you keep to the agreed payments. Even after an outright order, a warrant can be suspended — sometimes on the day the bailiffs are due — if your circumstances have changed.

If you cannot keep the home

A private sale usually raises more than a forced sale. Ask the lender for a marketing period; most agree to three to six months if you keep them informed. Any equity left after the mortgage and costs belongs to you, but in negative equity a shortfall debt survives the sale — and shortfalls over £5,000 can support a bankruptcy petition, so negotiate a settlement or write-off with advice from a debt charity.