Seeking Help: Support And Resources For Homeowners At Risk Of Repossession In The UK

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Facing the potential loss of your home through repossession is stressful and frightening. However, various options exist to help homeowners in the UK who are struggling with mortgage payments avoid repossession and keep their property. This article outlines the key bodies providing support, relief schemes available from lenders, alternative solutions to consider, and tips for proactively managing difficulties.

Understanding the Risks

Repossession occurs when a mortgage lender takes legal ownership of a property due to the homeowner defaulting on mortgage payments. It is usually the lender’s last resort after working with the borrower to get payments back on track fails. However, swift engagement by homeowners facing payment problems can help prevent repossession from becoming necessary through repayment plans or debt solutions.

Who Can Help?

Several official bodies provide advice and support for homeowners struggling to pay their mortgage:

Citizens Advice – Offers guidance negotiating with lenders plus help accessing state and charitable support.

MoneyHelper – Government-backed service assisting with free debt advice and money guidance.

Financial Conduct Authority – Regulates mortgage lenders and can assist with complaint resolutions.

The Mortgage Lender – Oversees code of practice for treating customers with payment difficulties fairly.

Department for Levelling – Up, Housing and Communities – Funds mortgage assistance schemes like Support for Mortgage Interest.

Charities like Step – Change and Shelter also advocate on behalf of borrowers at risk of repossession.

Independent legal advice from property lawyers guides in understanding the repossession process and borrowers’ rights too.

Lender Support Schemes

Mortgage lenders offer a range of options to support borrowers in financial difficulty:

  • Mortgage holidays – Temporary suspension of payments lasting from 3-6 months.
  • Arrears capitalisation – Accumulated missed payments get added to the overall mortgage amount.
  • Extended loan term – Repayment period lengthened to reduce monthly payments.
  • Interest rate reductions – Temporarily reducing interest charged to lower payments.
  • Underpayment flexibility – Agreeing lower payments for a period until issues are resolved.
  • Payment matching – Lender increases payments if homeowners’ income goes up.
  • Formal payment plans – Structured schedule enabling borrowers to fully repay arrears over time.

Activating one of these solutions quickly is essential to ease immediate pressures and avoid repossession procedures starting.

Government Mortgage Support

National government schemes also assist where lender forbearance is insufficient:

  • Support for Mortgage Interest – Provides state support contributing to mortgage interest payments for benefit recipients.
  • Mortgage Rescue Scheme – In extreme cases, the government funds shared equity deals enabling homeowners to remain through social tenancies.
  • Benefits Support – Maximising income/disability-related benefits can help cover mortgage shortfalls.
  • Legal Aid – This may cover the costs of negotiating with lenders and contesting repossession.
  • Tax Support – Negotiating easier payment terms for tax arrears that contribute to unaffordability.

While limited, government help could facilitate more time or assistance with housing costs.

When to Contact Your Lender

The most important thing is contacting your mortgage lender at the very first sign of payment difficulties:

  • Income instability – Job loss, reduced pay or illness impacting affordability.
  • Relationship breakdown – Events like divorce leave one party unable to cover the mortgage.
  • Payment problems – Missing payments frequently or using credit to pay the mortgage.
  • Ongoing budget issues – Consistently needing to borrow more or build arrears to pay essentials.
  • Emergency spending – One-off expenses wiping out the money set aside for mortgage payments.

By flagging issues early, more options are available before arrears build up and put repossession on the table.

Be Prepared with Financial Information

To benefit from lender support schemes, comprehensive details about your situation are required:

  • Documentation of impact – Letters evidencing job loss, illness, divorce etc.
  • Updated budget breakdown – Full list of your incomings and outgoings.
  • Bank statements – Showing the latest payments in and out of your accounts.
  • Arrears information – Total amount outstanding and breakdown by month.
  • Temporary solutions – Any savings or credit you have drawn on already.
  • Alternative payment proof – Details of any benefits, insurance or income sources.
  • Mitigation steps – Any costs you have reduced where possible.
  • Future changes – Likely improvements e.g. return to work, benefit payments.

Full transparency around your financial situation allows appropriate solutions to be agreed upon.

Assessing All Options

Alongside lender relief schemes, explore alternative repayment solutions:

  • Payment protection insurance – Review if your policy covers loan repayment help.
  • Extend the loan term – Adding years to the mortgage duration means lower monthly payments.
  • Remortgage – If equity allows, changing lender/product could secure lower payments.
  • Rent rooms – Generate rental income via lodgers to subsidise the mortgage.
  • Sale or downsize – Releasing equity can clear arrears and secure a cheaper property.
  • Equity release – Unlocking property value through equity release schemes.
  • Debt restructuring – Consolidating through lower-interest loans can assist.
  • Debt management plan – Reduced monthly payments to creditors can ease budget pressures.
  • Early pension access – Drawing pension funds may provide a vital cash injection.
  • Benefits check – Charities can assess eligibility for any unclaimed support.
  • Grants and charity support – Additional financial assistance and advocacy.
  • Bankruptcy – Clears unsecured debts which may enable mortgage payments again.

Comparing all options helps formulate the most viable solution.

Making Payment Offers

When proposing repayment solutions to lenders, emphasise affordability:

  • Be realistic – Offer only what you can reliably maintain long term. Avoid optimistic projections reliant on uncertain changes.
  • Start small – Propose an initial 3-6 month trial at a lower payment to prove your capability.
  • Offer payment evidence – Provide documentation like bank statements and benefit letters to back up the level you can stretch to.
  • Increase gradually – Commit to incrementally increasing payments over time as the situation improves.
  • Incorporate lump sums – Any windfalls, savings or gifts can help offset arrears too.
  • Keep communicating – Ongoing dialogue with the lender builds goodwill during difficult periods.

Sustainable offers demonstrating good intentions and openness stand the best chances of acceptance.

Steps to Avoid Repossession Action

Alongside payment solutions, homeowners should take preventative measures:

  • Seek advice early – Speaking to charities and lawyers helps understand the process and strengthens your position.
  • Cooperate fully – Honesty and transparency in dealing with the lender gives the best chance of support.
  • Never ignore communication – Respond promptly to all letters, calls and warnings from the lender.
  • Attend hearings – Seek legal representation and personally attend court repossession hearings.
  • Keep up property maintenance – Prevent dereliction that causes lender concerns over asset values.
  • Explore alternatives – Weigh up the pros and cons of voluntary surrender, sale or bankruptcy.
  • Fight eviction legally – Seek injunctions blocking enforced repossession where grounds are limited.

Exercising your rights can help delay repossession and extend available solutions.

Emotional Support Needs

The threat of losing your home creates huge stress and anxiety:

  • Don’t isolate yourself – Share your difficulties and seek support from friends and family.
  • Talk to others affected – Peer support groups connect people experiencing similar situations.
  • Be self-compassionate – Don’t dwell unhelpfully on self-blame. Refocus efforts constructively.
  • Manage expectations – Prepare mentally for different outcomes so anxiety is reduced.
  • Recognise progress – Small milestones still count even if the end goal isn’t fully achieved yet.
  • Look to the future – Remain hopeful and focused on life beyond the immediate challenges.
  • Seek counselling – This can help process the emotional impact and keep focused.
  • Prioritise wellbeing – Eat well, rest properly and make time to restore yourself.

Protecting your emotional health maximises resilience to cope during this difficult period.


In summary, homeowners facing the stark prospect of repossession should know they do not have to endure it alone. Mortgage lenders provide tailored relief programmes while government and charities offer safety nets for the vulnerable. Together with legal protections, timely financial advice uncovers feasible options for avoiding repossession through alternate repayment solutions. While emotionally difficult, addressing situations proactively and comprehensively limits risks. For homeowners committed to protecting their property, extensive help exists on where to start and what support is available.

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