What Happens If You Can’t Pay Your Mortgage?
Falling behind on your mortgage can feel overwhelming, but there are steps you can take to regain control. Acting quickly and exploring all your options is key. Your lender will want to recover their money ASAP and you will need to discuss a firm schedule of reayment with them.
National Residential specialise in selling all types of property in as little as 7-28 days andcompleting in 56 days (12 weeks in total) which is normally fast enough for most lenders.
With your permission, we can make arrangement with your lender on your behalf to pay off your debt and stop any repossession process to prevent you being evicted.
Contact your lender immediately if you’re struggling to pay.
Most lenders prefer to work with you to find a solution rather than pursue legal action. When you speak with your lender, explore the following options:
- Payment holidays: Temporary breaks from payments.
- Switching to interest-only repayments: Reduces monthly costs but increases the long-term repayment period.
- Extending the mortgage term: Lowers monthly payments by spreading them over a longer timeframe.
Repossession is a last resort for lenders. They must give you opportunities to work out an alternative payment plan – e.g.
- Debt advice: Agencies like StepChange and National Debtline offer free, confidential support to manage debts.
- Try to pay something: Even partial payments show good faith and may prevent further action.
Repossession
A mortgage is a loan secured on your home which means if you can’t repay the loan, the lender has a right to repossess your home.
To reclaim the money owed as fast as possible with as little involvment as possible, most lenders use inhouse (traditional) auction houses to sell repossessed properties. Unfortunately, when bidding is only open for an hour and the only bidders are people who can bid in the middle of the day, these types of auction typically only achieve 70% of the market value.
Owners whose properties have grown in value can see their equity reduced to nothing in the face of low sales prices, auction costs and legal fees. Sadly, even that isn’t necessarily the end of it – if the sale doesn’t cover the loan and your lender’s costs, it can still chase you for the cash for up to 12 years, and six years for any interest.
Sell your property to avoid repossession
If your property is at risk of being repossessed and there isn’t any suitable long term help available; you might want to consider selling the property to repay the loan before your lender starts action to repossess.
Although it may seem counterintuitive if you are trying to protect your home, you will probably get a better price selling the property yourself. You will have greater control of when and how you move and not be liable to the additional fines and legal costs incurred by your lender in the repossession process.
Plus you won’t have a repossession registered against you, which will severely affect your chances of getting a mortgage in the future.
How National Residential Can Help
Lenders will often work to strict timelines so depending on how many months payment you have missed, you may only have a couple of months to sell your property before the lenders step in and take over the sale (start the repossession process).
Property sales made through high street agents can easily take 6 months+ to sell and complete which is too long for most lenders. In addition, 25%+ of property sales through high street agents collapse meaning even an agreed sale is not a certain solution.
National Residential specialise in selling all types of property in as little as 7-28 days andcompleting in 56 days (12 weeks in total) which is normally fast enough for most lenders.
In instances where that time frame is not acceptable or where repossession process is already started, we can even arrange an interest free cash advance (to be repaid in full on completion) to pay the lenders any missing payments to extend the timeframe available to get the best price for your property.
- Quick sales: Sell your property in as little as 7–28 days to avoid repossession and additional debt.
- Guaranteed offers: They provide a fair, guaranteed cash offer for your home, often higher than auction prices.
- Legal support: Assistance with legal processes to ensure a smooth and secure sale.
- No hidden fees: Transparent pricing with no unexpected costs.
Contact us today to stop your property being repossessed fast
Don’t wait. Call us today on 0800 6123694 or 01244 341066—our team is available 24/7 to assist you. Alternatively, fill out our callback form, and we’ll reach out to discuss your needs.
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