Your Rights When Facing Repossession
A mortgage lender cannot simply repossess your home — they must follow a legal process. The Pre-Action Protocol for Mortgage Arrears requires lenders to try to resolve arrears before issuing proceedings. Under s.36 Administration of Justice Act 1970, courts have wide powers to adjourn or suspend possession where there is a reasonable prospect of the arrears (and the rest of the mortgage) being paid within a reasonable period.
Lenders must contact you as soon as you miss a payment, consider allowing you to pay the arrears over the remaining mortgage term, consider postponing proceedings if you are taking active steps to sell the property, and respond to reasonable proposals to pay the arrears.
At a possession hearing, if you can demonstrate that you are likely to be able to pay the arrears within a reasonable time (often judged as the remaining mortgage term), the court must adjourn or suspend the possession order. The suspension is conditional — breach of the agreed payments leads to the order taking effect.
Some repossession cases involve unlawful charges, miscalculated interest, or sub-prime lending that was mis-sold. These can be a defence or counterclaim in proceedings, potentially reducing the arrears or entitling you to compensation.
For second charge mortgages or secured loans regulated under the Consumer Credit Act, you can apply for a time order — allowing you to repay the debt (including arrears) by instalments the court considers reasonable, and potentially reducing the interest rate.
The Mortgage Repossession Process
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1
Arrears and lender contact
As soon as you miss a payment, the lender adds a monthly arrears charge and will contact you. Under the Pre-Action Protocol, they should explore repayment proposals — including adding arrears to the mortgage balance (capitalisation), extending the mortgage term, or a payment holiday where eligible.
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2
Possession claim issued
If arrears are not resolved, the lender issues a possession claim in the County Court. You receive the claim form (N5 or N5b) and a hearing date — usually 4–8 weeks away. You must file a defence or at least attend the hearing.
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3
The possession hearing
At the hearing, the judge reviews the arrears, your income and expenditure, and your proposals. If you can show a realistic repayment plan, the court can suspend the possession order — meaning you keep your home if you comply. A solicitor can present your financial position persuasively and negotiate with the lender's solicitors before the hearing.
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4
Possession order & warrant
If a possession order is made without suspension, you have typically 28 days to leave. If you remain, the lender applies for a bailiff's warrant. You can apply to suspend the warrant on hardship grounds — but the time to act is before the hearing, not after.
What to Do If You Are Facing Repossession
- 📞 Contact your lender immediately — explain why payments have been missed and propose a repayment plan. Lenders must consider reasonable proposals before issuing proceedings.
- 💰 Maximise your income — check entitlement to Support for Mortgage Interest (SMI) and other benefits. SMI is a government loan that pays the interest element of mortgage payments for those receiving certain benefits.
- 📄 Do not ignore the claim form — complete and return the mortgage arrears information form (N11M) and any defence. Failure to respond makes a suspension order far less likely.
- 🏦 Explore refinancing or sale — if repayment is not realistic, a solicitor can negotiate with the lender to permit a sale (including a short sale below the mortgage balance), avoiding the costs of a formal repossession.
- ⚖️ Attend the hearing — even without a solicitor, attending and presenting a repayment plan is significantly better than not appearing. Courts are sympathetic to those who engage with the process.
Frequently Asked Questions
Can I stop repossession proceedings once they have started?
Yes, at several points. Before the hearing, negotiating a repayment arrangement directly with the lender (or through a solicitor) can lead to the claim being stayed. At the hearing, the court can suspend the possession order if you can show a realistic repayment plan. Even after a possession order, an application to suspend a bailiff's warrant is possible on hardship grounds. The key is to act quickly and attend all hearings.
What happens if I am repossessed and the sale doesn't cover the mortgage debt?
If the property is sold for less than the outstanding mortgage (a "shortfall"), the lender can pursue you for the difference. This is a personal debt, and the lender has 12 years to sue on the capital and 6 years on the interest. You can negotiate a settlement, particularly if you can demonstrate inability to pay. Debt advice is strongly recommended — some shortfalls can be written off or settled for significantly less than the full amount.
Can I sell my property myself to avoid repossession?
Yes. Many lenders will agree to pause proceedings to allow a sale — particularly if the property has equity. Instructing an estate agent quickly and keeping the lender informed of progress is important. The Pre-Action Protocol for Mortgage Arrears requires lenders to consider whether a voluntary sale is possible before pursuing repossession. A solicitor can help negotiate a standstill agreement with the lender while the property is marketed.
I have a second charge mortgage in arrears. Does it work the same way?
Second charge mortgages (secured loans) are regulated under the Consumer Credit Act 1974 or the Financial Conduct Authority's Mortgage Market Review rules, depending on when the loan was taken out. For CCA-regulated loans, you can apply for a time order to restructure the debt. The s.36 AJA suspension power also applies to second charge mortgages. Get specialist advice — the procedure and your rights depend on the specific nature of the loan.