Top 10 tips to avoid repossession

Top 10 tips to avoid repossession

If you're a single parent and struggling to pay your mortgage, it's essential to stay focused on what's most important.  Here are some suggestions of things that you can try doing if you are in danger of having your house repossessed.  

1. Speak to your lender as soon as possible to explain your situation – you may be able to negotiate terms which will allow you to keep your home.

2. See if your lender will allow you to, take a temporary payment holiday or add your arrears to your mortgage loan, this is known as capitalising your arrears or perhaps pay off your arrears in instalments.

3. Your lender may agree to extend your mortgage term – this will allow you to make your payments over a longer period of time and will reduce your monthly repayments. But it will also increase the amount you have to repay in the long-run

4. Rent out the property – if you can, and rent somewhere cheaper. However, there is likely to be a term in your mortgage agreement preventing you doing this unless you get permission from your lender, which they may be unlikely to give. Another option could be to rent out a room in your home

5. Sell the property – if it is possible to sell the property to pay off the debt

6. Change your type of mortgage – you might be able to switch to an interest-only mortgage. This may reduce your monthly repayments. But it is only worth doing this if you are able to manage these new payments

7. Turn up to court – if your case goes to court make sure that you turn up – even if you think that your situation is hopeless, you may still be able to save your home

8. Don’t simply hand in the keys - This will not solve your financial problems, you will still be liable for the mortgage until your home has been sold, or any shortfall repaid

9. See if you are entitled to any benefits which may help you, such as support for mortgage interest. And avoid borrowing more money if you can, as this may only make your problems worse

10. Get legal advice – make sure that you seek advice well before you have to go to court. This will allow you to prepare for your case, and look at your finances in detail. Use our directory to find face-to-face housing advice services in your area.  Seek confidential personalised expert advice from the One Space housing expert.  

Information from the Shelter website and advice available from the Shelter National Helpline on 0808 800 4444.