FAQs about Litigation & Disputes

HOW TO AVOID REPOSSESSION

There are some practical  ways to avoid repossession:

  • Protect yourself against financial disappointments, for example, by opening a saving account.
  • Use unemployment insurance to protect yourself against accidents or sickness insurance which can pay monthly salary. You may have to wait for the first payment for couple of months but then after the policy gets cheaper. This type of insurance is not normally available to self-employed workers.
  • Contact your lender for the advise as soon as you think you may have to miss the payment. Your lender may lower your mortgage payments for a short period of time.
  • Stay calm, as it is about from the time of non- payment to being evicted.

Court Proceedings for repossession

The lender will normally issue the court summons when you are six months in arrears. Therefore, you should talk to your lender to avoid court proceedings.

Failure to respond to your lender’s letters will normally lead to the lender issuing the summons. If the lender is successful, you will have 28 days to vacate the premises.

Sensible ideas when facing repossession

  • Contact a charity that offers a free debt advice, such as Citizens Advice or the Consumer Credit Counselling Service.
  • Avoid further debts

Asking for government assistance – are there any possibilities ?

  • Support for Mortgage Interest (SMI) – this scheme is for unemployed who claim means-tested benefits and applies to single people paying for mortgage or where both partners are unemployed.
  • Home owners’ Mortgage Support (HMS) – it allows unemployed borrowers to defer interest payments for up to two years.
  • Mortgage Rescue Scheme aims to help the most vulnerable people.

For more help, click here.