How many mortgage payments can be missed before repossession occurs in the UK?

If you’re reading this article, it’s likely that you’re struggling to pay your mortgage and need answers to avoid repossession from happening.

When you have overdue mortgage payments, you’re considered to be ‘in arrears’ and falling behind on mortgage payments can create serious financial strain, impacting not only your credit score but also your ability to keep your home.

Mortgage arrears might lead to repossession, where your lender takes legal action to claim ownership of your property and sell it to recover the debt. For homeowners, the risk of repossession can be particularly daunting, as it threatens not only your financial stability but also the security of having a place to call home.

 
While missing a mortgage payment may seem like a small slip-up, it’s often the start of a larger process. Each missed payment increases your arrears, and without intervention, it can trigger a cycle that’s hard to stop. Lenders in the UK are required to treat repossession as a last resort, giving homeowners time and support options to resolve financial difficulties before legal proceedings commence. However, the sooner you address your arrears, the greater your chances of finding solutions that allow you to retain ownership of your property.

This guide will take you through the repossession process, detailing how many missed payments can lead to repossession and what proactive steps you can take to protect your home. From understanding how repossession works to knowing your rights and finding practical ways to manage arrears, this article aims to give you a detailed and comprehensive resource for navigating mortgage challenges.

Ready? Let’s get stuck in.

Contents

• The importance of addressing missed mortgage payments promptly
• How many mortgage payments can you miss?
• What steps can I take to avoid repossession?
• Will lenders help me avoid repossession, even though I can’t afford my mortgage?
• Accessing financial support to prevent repossession
• The repossession process
• What happens if a repossession order is granted?
• How common is it to have a house repossessed in the UK?
• Is there another option available, to avoid repossession and minimise the impact on my credit score?
• Summary: avoiding repossession through communication and proactivity
• FAQs
• Further reading
• Want to talk? 

The importance of addressing missed mortgage payments promptly

Missing even a single mortgage payment can trigger a chain of events that may lead to serious financial and legal consequences. Most lenders will get in touch within 15 days or so of the missed payment to discuss the situation, but waiting for them to contact you is not the best approach.

Taking the initiative to contact your lender as soon as you realise you may have difficulty making a payment shows that you’re proactive and serious about finding a solution so that things don’t get worse. This early communication demonstrates your commitment to resolving the issue, which may encourage your lender to work with you rather than immediately escalate the matter.

Lenders are required by the Financial Conduct Authority (FCA) to view repossession as a last resort, with specific protocols in place to help borrowers address arrears before reaching that stage.

However, being in arrears means that the process leading towards repossession has already begun. The lender will typically record each missed payment, and this will impact your credit report and be marked as a formal ‘arrears’ status. This can have wider financial implications, affecting your ability to obtain future credit or finance.

Here’s what generally happens once you enter arrears and why it’s so important to take immediate action:

1. Notification and recording of arrears: When you miss a payment, lenders are required to notify you promptly and keep a record of the arrears on your mortgage account. This record is also shared with credit agencies, so it can negatively impact your credit score. Even a single missed payment can stay on your credit report for up to six years, affecting future loan applications and potentially making it harder to secure favourable terms on credit or finance. 
2. Increasing financial strain: The financial impact of missed payments compounds over time. Each month you miss a payment, the amount owed accumulates, which means you’ll have a larger balance to clear to return to good standing. Interest will continue to accrue on the overdue amounts, leading to a growing debt that becomes increasingly challenging to manage. It can feel like you’re standing on quicksand and sinking deeper each month. If you’re unable to make full payments, discussing a reduced or partial payment with your lender can at least help slow down the accumulation of arrears. 
3. Reaching an agreement with your lender: When you proactively reach out to your lender, you may find they are more willing to consider alternative arrangements, such as payment holidays, term extensions, or interest-only payments, depending on your situation. Lenders are often open to exploring solutions that could reduce your monthly obligation temporarily, especially if they believe you are actively working to resolve the arrears. If you wait for the lender to contact you, they may already be considering more formal steps, such as escalating the arrears process. Be proactive and take the first step, even though it might be difficult to admit that you’re having trouble.  
4. Avoiding escalation and legal action: By addressing the issue early, you may be able to prevent your lender from initiating formal proceedings. After several missed payments, your lender might issue a default notice, which is a formal warning that your property is at risk of repossession. Each missed payment makes it more difficult to negotiate, as the lender is increasingly likely to proceed with legal action if no progress is made. Being proactive reduces the likelihood of receiving a default notice or having your account passed on to a repossession team. 
5. Preserving your options and protecting your home: Early action can keep more options open to you. When arrears accumulate, you may lose flexibility in negotiating terms, which limits the solutions available. Some lenders are willing to capitalise arrears (add the missed payments to the total mortgage balance), extend the term to reduce monthly payments, or offer temporary interest-only arrangements. However, these options are more accessible when the arrears are minimal and when the lender believes you are making a genuine effort to manage your payments.

While missed payments signal a potential issue, each subsequent missed payment increases the urgency and limits your options. By contacting your lender at the earliest sign of difficulty, you can demonstrate your intent to resolve the situation and often have access to supportive options that can help to keep you on track with your mortgage. The quicker you address any arrears, the more likely you are to prevent repossession.

How many mortgage payments can you miss?

When it comes to missed mortgage payments, lenders generally try to avoid repossession unless it’s absolutely necessary. Each lender has its own policies, but as a general rule of thumb, most will not start repossession proceedings immediately after a single missed payment.

That said, missing even one payment can place you on a path toward potential repossession if the situation isn’t addressed promptly.

Here’s a breakdown of what to expect if you fall behind on mortgage payments and how different factors can influence the timeline toward repossession…

General guidelines on missed payments

While every lender may differ in their specific approach to arrears, a commonly followed guideline is that lenders won’t begin repossession proceedings until you’ve missed at least three consecutive monthly payments. According to the UK’s Financial Conduct Authority (FCA), repossession is considered a last resort, and lenders are required to make every effort to reach an alternative solution with the borrower. This could mean offering temporary payment holidays, restructuring the mortgage, or even extending the loan term to make monthly payments more manageable.

However, this three-month window is only a guideline and not a guarantee. Lenders assess missed payments on a case-by-case basis, and several factors can influence how quickly they decide to take further action. Here’s a closer look at the common practices:

1. One missed payment (15 to 30 days in arrears): After a single missed payment, your lender will usually contact you within 15 days to notify you of the overdue amount. At this stage, your account is considered ‘delinquent,’ but repossession is generally not yet a concern. Lenders will often encourage you to resolve the payment quickly and may offer options if your missed payment is due to temporary financial issues. However, this first missed payment may still be reported to credit bureaus, impacting your credit score. 
2. Two missed payments (30 to 60 days in arrears): If you miss two consecutive payments, the lender will typically increase their communication efforts. At this stage, your account status shifts to what is often referred to as ‘in arrears,’ and the lender will likely follow up with written notices, emails, and phone calls. Many lenders will send what’s known as a ‘pre-action protocol’ notice, which explains the consequences of missed payments, your rights as a borrower, and the available support options. 
3. Three missed payments (90 days in arrears): Missing three payments is often the tipping point where the risk of repossession becomes real. Most lenders will now consider your account to be ‘in default’ and may issue a formal ‘default notice.’ This notice is a legal requirement in the UK and gives you a specified period, usually 14 to 28 days, to make up the missed payments before further action is taken. Receiving a default notice can significantly affect your credit report, making future loans and credit considerably more difficult to secure. This stage is critical; at this point, lenders may start to consider repossession if no action is taken to address the arrears. 
4. Four or more missed payments (120+ days in arrears): Once you reach this stage, the lender may have exhausted all communication attempts and formal notices, and they may initiate the repossession process if you’ve made no attempt to rectify the arrears. Repossession proceedings are then filed with the court, and you will be notified of a court date. Depending on the lender’s assessment of your situation and their policies, the timeline for repossession proceedings can vary, but typically, this stage is reached after four or five missed payments.

Factors that may accelerate or delay repossession

While lenders often wait until three missed payments before taking legal action, certain circumstances can cause the process to accelerate or slow down:

• Communication with the lender: If you communicate regularly with your lender and show that you’re actively seeking solutions (such as partial payments, or seeking debt advice), they may delay formal proceedings. Lenders appreciate borrowers who are transparent about their financial situation and are willing to work with them on repayment options. 
• Extent of financial difficulty: If your lender believes that your financial issues are temporary, such as a short-term job loss, they may be more inclined to offer support and delay proceedings. However, if your financial difficulties appear to be long-term, or your property’s value is at risk, they may proceed more swiftly with legal action. 
• Credit history and borrowing record: Borrowers with a good payment history may be given more flexibility by lenders than those with a history of missed payments or financial issues. A positive credit record may indicate to the lender that your current financial problems are only temporary, leading to more leniency. 
• The lender’s repossession policy: Each lender’s repossession policy varies, and some may initiate proceedings sooner than others. For example, high-street banks may follow stricter protocols, while some smaller lenders may be quicker to consider legal action due to limited resources for managing arrears. 

Impact of missed payments on credit and mortgage options

As mentioned, missed payments are likely to be recorded on your credit report, typically remaining visible for up to six years. This can have long-term consequences, affecting your ability to qualify for store credit, credit cards, mortgages, car finance, or loans in the future. Many lenders will assess your recent credit activity, and multiple missed mortgage payments may well be viewed as a sign of financial instability.

If you manage to address the missed payments early on, you can lessen some of this impact. At least to a certain degree. But the longer you wait to resolve the arrears, the more challenging it may become to restore your financial standing and secure future credit.

Legal protections for borrowers in arrears

The FCA requires lenders to treat customers fairly and consider any proposals the borrower makes to clear arrears. Under the Mortgage Conduct of Business (MCOB) rules, lenders must:

• Provide clear information on the implications of missed payments
• Consider reasonable payment proposals that you present
• Allow a reasonable timeframe to resolve arrears before seeking repossession

These rules provide a degree of protection to borrowers, ensuring that lenders cannot initiate repossession prematurely. However, it’s essential for borrowers to be proactive in discussions with their lenders and make realistic repayment proposals, so as to benefit from these protections. What I’m saying is that offering to pay back 50p a week isn’t going to cut the mustard because it’s not a realistic repayment proposal in the grand scheme of things. 

So in summary, while the general guideline is that three missed payments could trigger repossession proceedings, there is some flexibility in how lenders handle arrears based on your communication and financial circumstances. Missing payments without engaging with your lender can significantly speed-up the process, whereas being proactive and making the first move might help you to secure options that can ease your financial burden and help avoid repossession.

What steps can I take to avoid repossession?

If you’re worried about missed payments leading to repossession, it’s really important to act promptly, as I just mentioned above. Many lenders offer solutions that can make your mortgage repayments more manageable in difficult times. Here are seven effective options that could be considered:

1. Extending the mortgage term

One option to reduce your monthly mortgage payment is to extend the loan term. By lengthening the mortgage period, the total debt is spread across more payments, which lowers the amount that is due each month. While this can relieve short-term pressure, it’s important to understand that it increases the total interest you’ll pay over time. An extended mortgage term may be useful if you’re facing a longer-term financial adjustment, but you should think about going back to the original term when your financial situation improves, so as to minimise any added interest costs.

2. Switching to an interest-only mortgage

Switching to an interest-only payment plan is another way to temporarily reduce your monthly outgoings. With interest-only payments, you’re responsible only for the interest each month, while the principal remains unchanged. This can significantly lower your monthly payment and provide temporary financial relief, making it suitable for situations where you expect your finances to stabilise or improve in the near future. However, remember that you’re not reducing your principal debt during this period, so it’s best to move back to a full repayment plan once you’re able to do so.

3. Requesting a payment holiday

Some lenders may offer a ‘payment holiday,’ allowing you to pause or reduce payments for a set period. This option can be helpful if you’re experiencing a temporary loss of income or an unexpected expense. Payment holidays are often available for a period of three to six months, depending on your lender’s policies and your mortgage terms. Keep in mind though that the interest will usually continue to accumulate during this time, potentially increasing the amount you owe once payments resume again.

4. Paying a reduced amount

If a full monthly payment isn’t possible, lenders could be open to accepting partial payments as a temporary measure. Arranging to pay a reduced amount shows your lender that you’re committed to staying on track and managing your debt. It can also prevent your arrears from escalating as quickly. Before approaching your lender, work out a detailed budget to establish what you can realistically afford. By presenting a well-thought-out proposal, you increase the chance that your lender will accept the reduced payment as a viable temporary solution.

5. Capitalising arrears

If your property’s value is greater than your outstanding mortgage balance, your lender may allow you to ‘capitalise the arrears,’ meaning the missed payments are added to the total loan balance. This method helps clear your arrears and spreads the repayments across the remaining loan term, which can make the debt easier to manage monthly. This option is typically more suitable for borrowers with enough equity in their home as it requires the lender’s confidence that the property’s value justifies absorbing the arrears into the mortgage balance.

6. Applying for a Support for Mortgage Interest (SMI) loan

If you’re eligible for certain benefits, such as Universal Credit or Income Support, you may qualify for a Support for Mortgage Interest (SMI) loan. This government-backed loan helps cover mortgage interest payments and is paid directly to your lender, easing the pressure to make full payments on your own. SMI loans are secured against your home and must be repaid when you sell the property. While it’s not a permanent solution, an SMI loan can help to reduce the risk of repossession. 

In order to apply for an SMI loan, you must currently be claiming:

• Universal Credit (if you’re not currently working)
• Income Support
• Jobseekers Allowance
• Employment and Support Allowance
• Pension Credit

If you meet the criteria for an SMI loan, you’ll usually get help paying the interest on up to £200,000 of your loan or mortgage. However, you can only get up to £100,000 if either:

• you’re already receiving Pension Credit
• you started claiming another qualifying benefit before January 2009 and you were below the state pension age at that time 

7. Use a debt advisor

If managing your mortgage arrears feels overwhelming, speaking with a debt advisor can be an excellent first step. Many not-for-profit organisations, such as Citizens Advice and StepChange, offer free debt advice tailored to your circumstances. An advisor can help you assess your finances, understand your options, and potentially negotiate with your lender on your behalf; great if you’re not confident doing so. Demonstrating to your lender that you’re seeking professional guidance shows commitment to fixing your situation and may strengthen your position if negotiations progress towards a court hearing.

Will lenders help me avoid repossession, even though I can’t afford my mortgage?

By talking to your lender, an alternative solution could be set-up that will help you make your payments whilst you address your financial problems.

It is always best to get ahead of the problem, so speak to your lender as soon as you think you might have difficulties repaying.

Some lenders may be willing to offer informal forgiveness, delay late fees, or not report the missed payment to credit agencies if you let them know beforehand that you’re going to fail to make an upcoming payment. 

If your inability to pay your mortgage is temporary – and you will be able to return to paying in full in the near future – your lender is likely to want to work with you and help you to avoid repossession.

However, if your financial issues are more permanent, they may refer you to their loss mitigation department. This could mean modifying your mortgage loan, or selling your house. Although this may seem like a daunting and scary prospect, it is preferable to defaulting payment on your mortgage and risking repossession.

This is why it is essential to speak to your lender to work out the best options for you and your situation.

If you are financially aware and act quickly, you shouldn’t have to worry about missing mortgage payments leading to repossession of your home. However, it’s not something that should be brushed under the carpet.

After all, if you can’t afford to pay your mortgage and you don’t communicate with your lender, they will take steps to repossess your home.

Accessing financial support to prevent repossession

If extending your mortgage term or switching to an interest-only plan isn’t enough, additional financial support options can help you to manage your payments and avoid repossession. Taking advantage of these resources can give you breathing space while you work to stabilise your finances.

Support for Mortgage Interest (SMI) Loans

As briefly covered above, a valuable option for those facing long-term financial difficulties is the Support for Mortgage Interest (SMI) loan. This government-backed scheme helps with the interest portion of your mortgage payments if you’re eligible for specific benefits, including Universal Credit, Income Support, Jobseeker’s Allowance, or Employment and Support Allowance. The SMI loan payments go directly to your mortgage lender, and the SMI loan does not require monthly repayments because it is only repaid when you sell your home or transfer ownership.

However, the loan is secured against your home, and interest accumulates on the SMI balance over time. Currently, the SMI interest rate is relatively low, at 3.66%, but it is subject to change, so be aware of that.

To apply, you must be receiving qualifying benefits, such as income-based Job Seekers Allowance, and there is usually a waiting period of 39 weeks before payments begin, although pensioners receiving Pension Credit may qualify for immediate assistance.

Universal Credit, Jobseeker’s Allowance, and other benefits

If you’re already claiming Universal Credit or Jobseeker’s Allowance, additional support may be accessible. Universal Credit provides financial aid to cover basic living costs, and in some cases, it can also help you meet mortgage payments. Specifically, Universal Credit may assist with interest payments on eligible mortgages, which can be vital for keeping you out of arrears. The Department for Work and Pensions (DWP) oversees these benefits, and it’s worth contacting them to see if you qualify for further assistance.

In addition to these core benefits, you may also be eligible for ‘budgeting advances’ through Universal Credit or one-time emergency assistance grants from your local council. These grants and advances can help cover urgent costs, such as missed mortgage payments, and reduce the chance of falling further into arrears.

Mortgage Payment Protection Insurance

Mortgage Payment Protection Insurance (MPPI) is an insurance policy designed to cover your mortgage payments in cases of illness, injury, or job loss. If you have MPPI, you may be entitled to receive monthly payments that cover part or all of your mortgage. This can provide essential financial relief during periods when you’re unable to work, and may reduce the risk of repossession due to missed payments.

Not all homeowners have MPPI, so it’s important to check whether this coverage is included in your mortgage agreement or as part of a separate policy. If you’re unsure, reviewing your policy documents or contacting your insurance provider can clarify your coverage. If you don’t currently have MPPI, and your financial situation stabilises, it might be worth considering it for future protection.

Taking in a lodger or renting out a room

If your financial difficulties are ongoing, one way to increase your monthly income is by renting out a room or taking in a lodger. Under the UK government’s Rent a Room Scheme, you can earn up to £7,500 per year tax-free by renting a furnished room in your home. This can provide a steady stream of income to help you meet mortgage payments, easing financial pressure and demonstrating to your lender that you’re actively managing your situation.

Before taking in a lodger, it’s important to check your mortgage agreement, as some lenders may require prior consent. Additionally, renting out a room may affect certain benefits, such as housing benefit, so think about having a chat with a financial advisor or checking government guidance so that you can find out about any potential impacts.

Seeking debt counselling and financial advice

Getting support from a debt advisor or financial counsellor can help you to get tailored solutions based on your specific circumstances. Organisations like Citizens Advice, StepChange, and National Debtline offer free, confidential advice to help you manage mortgage arrears and avoid repossession. A debt advisor can assist with budgeting, negotiating with your lender, and exploring eligibility for grants or benefit schemes.

Additionally, showing your lender that you’re receiving professional advice from a recognised body may strengthen your position if repossession proceedings are being considered.

Debt counselling services often have access to resources and emergency funds that might not be readily available to the public, so don’t hesitate to contact them. Taking this step not only helps you gain control of your finances but also demonstrates to your lender that you’re taking the arrears seriously and seeking expert guidance to manage your debts.

Local council support and emergency grants

Many local councils provide grants or loans for residents facing housing difficulties, including missed mortgage payments. These are typically reserved for urgent cases and may be available under various names, such as ‘Discretionary Housing Payments’ or ‘Hardship Grants’. These funds are often non-repayable and can provide temporary relief to help you avoid falling further behind on your mortgage.

Each council has its own eligibility criteria and application process, so it’s worth contacting your local authority to find out what support might be available. These grants can be particularly useful in emergencies, helping you cover essential payments and maintain stability while you work towards a more sustainable financial solution.

Acting quickly to explore these financial support options can help you prevent mortgage arrears from escalating, keeping you on track with payments and reducing the risk of repossession. By being proactive and making use of available resources, you can stabilise your finances and protect your home.

The repossession process

If arrears continue to build and no resolution is reached, your lender may decide to start legal proceedings to repossess your property. Repossession is considered to be a last resort and is typically pursued only after all other options have been exhausted.

Here’s a breakdown of the key stages in the repossession process, from initial notifications to potential court proceedings.

1. Notification of arrears

The repossession process begins with a formal written notification from your lender, informing you of the outstanding arrears and the actions you need to take to prevent further escalation.

This notification will typically include:

• A breakdown of missed payments and the total amount of arrears
• Contact information for support services, such as financial counselling or debt advice organisations
• Details on potential options for repaying the arrears, including repayment plans or adjustments to your mortgage terms

At this stage, lenders are required by the Financial Conduct Authority (FCA) to communicate clearly and transparently, ensuring that you fully understand the situation and any consequences.

This notification serves as an opportunity to open a dialogue with your lender and propose a realistic plan to address the arrears, potentially avoiding further steps in the repossession process.

2. 
   Pre-action protocol and legal notice

If no agreement is reached following the initial notification, the lender may proceed with issuing a formal legal notice, known as a pre-action protocol. This protocol is intended to encourage communication and negotiation before court action. The pre-action protocol requires the lender to:

• Provide a final summary of the arrears and any charges that have accrued
• Advise you of your rights as a homeowner and the steps to take if you wish to avoid court proceedings
• Suggest practical options, such as seeking advice from a debt counsellor or exploring financial support options if they haven’t already been addressed

If you don’t respond to the pre-action protocol or if an agreement is still not reached, the lender may then apply to the court for a possession order. This application includes detailed records of the arrears, communication attempts, and any alternative payment proposals you may have submitted.

3. 
   Court summons and hearing

Once a possession order has been filed, the court will issue a summons, notifying you of the hearing date. You will also receive details of the lender’s claim, including:

• The specific amount of arrears
• Information about any court fees or costs that may be added to your total debt if the possession order is granted

It is crucial that you attend the court hearing, as this is your chance to present evidence that may prevent or delay the repossession. You may want to get legal assistance or go along with a debt advisor who can help you argue your case. At the hearing, the judge will review your situation in full, considering:

• Any payment proposals you’ve made to reduce arrears
• Evidence of financial counselling or support you’ve sought
• Your overall financial circumstances and any efforts you’ve made to resolve the issue

4. 
   Possible court outcomes

The judge’s decision may vary depending on the details presented. Here are the possible outcomes:

• Possession order: If the judge determines that repossession is justified, they will grant a possession order to the lender, allowing the sale of your property to recover the outstanding debt. If granted, you may be required to vacate the property within a specific period, typically 28 to 56 days after the court date. 
• Suspended possession order: In some cases, the judge may issue a suspended possession order. This allows you to stay in your home provided you meet certain conditions, such as paying off a portion of the arrears along with your regular monthly mortgage payment. Failing to meet these conditions could result in the lender applying for immediate possession. 
• Adjournment: If the judge believes that there are valid grounds for delaying the decision, they may adjourn the case. This could happen if further information is required or if there’s evidence that you’re working toward a viable repayment solution. An adjournment provides extra time to demonstrate your commitment to resolving the arrears. 
• Dismissal: If the judge finds that the lender has not followed proper procedures or that the repossession is not justified, they may dismiss the case. This outcome prevents repossession, but it’s essential to maintain communication with your lender to avoid a similar situation in the future. 

I’ll look at each of these outcomes in more detail in the next section, ‘What happens if a repossession order is granted?’

5. After the court decision

If a possession order is granted, you’ll typically have a set time period to vacate the property, although you may be able to negotiate an extension under specific circumstances. If a suspended possession order is granted, strictly following the repayment terms is crucial, as failing to do so could allow the lender to take immediate possession.

Should you be facing a repossession order, it’s worth exploring options like a quick house sale or contacting housing advice organisations for additional support. These resources can help you avoid the long-term impact of repossession on your credit record and future mortgage applications.

What happens if a repossession order is granted?

If the court grants a repossession order, you may be required to vacate the property within 28 to 56 days, depending on the court’s specific terms. However, a repossession order doesn’t always mean you’ll have to leave your home immediately, as there are several possible outcomes based on the details of your case and any evidence presented at the hearing. Here’s a more detailed look at the potential scenarios:

Immediate possession order

If the court grants an outright possession order, you’ll be given a deadline – typically 28 to 56 days – to vacate the property. This period allows you to arrange alternative accommodation and organise your belongings. During this time, it may still be possible to negotiate with your lender or explore options like selling your home quickly to settle the debt, potentially avoiding the repossession’s full impact on your credit record. If you’re unable to vacate within the specified period, the lender may request a bailiff warrant from the court to enforce the eviction.

Suspended possession order

In cases where the judge believes there is a reasonable chance you can resolve your financial situation, they may issue a suspended possession order. This outcome allows you to remain in your home under specific conditions, which usually include:

• Making regular mortgage payments: You may be required to resume your regular monthly mortgage payments
• Clearing arrears in instalments: The court may stipulate that you pay an additional amount each month toward the arrears, allowing you to gradually reduce the outstanding debt

The suspended possession order is a conditional opportunity to retain your home, and failure to meet these conditions could lead to the lender reapplying for a full possession order. It’s essential to adhere to the court’s terms, as non-compliance could result in a faster repossession process. If your circumstances change or you can no longer meet the terms, you may be able to apply for a variation in the repayment terms, although this really does depend on the court’s approval.

Adjournment of the case

If the judge finds that additional steps or information are needed, they may adjourn the case to a later date. This postponement allows both you and the lender more time to gather relevant information, explore negotiation options, or consult with a financial advisor or debt counsellor. An adjournment may occur if:

• New evidence has been presented that may influence the case’s outcome
• Negotiations are in progress with the lender, and the judge believes that an agreement could be reached outside of court
• Financial circumstances are expected to improve, such as the start of a new job or an upcoming payment that will clear the arrears

While an adjournment doesn’t guarantee the repossession case will be dismissed, it can provide you with extra time to explore viable repayment solutions. If granted, it’s wise to use the additional time to communicate regularly with your lender and demonstrate your commitment to resolving the issue.

Dismissal of the case

In some situations, the court may dismiss the case altogether. This outcome is rare and generally occurs if:

• The lender has failed to follow correct procedures: Lenders must adhere to the Mortgage Conduct of Business (MCOB) rules, which require them to treat repossession as a last resort and explore all viable alternatives before pursuing legal action. If the lender hasn’t adhered to these protocols, the court may dismiss the case 
• Reasonable repayment proposals were rejected: If the judge believes that you presented a fair and achievable repayment plan and the lender refused without valid reason, the judge may dismiss the case 
• The lender cannot justify the repossession: If there’s insufficient evidence that repossession is necessary or fair, the judge may rule against the lender

Dismissal prevents immediate repossession, but it doesn’t erase your mortgage arrears completely. You will still need to negotiate a plan with your lender to prevent future issues. If you find yourself in this situation, it’s essential to maintain open communication with your lender so as to avoid further legal action.

By understanding the possible outcomes when a repossession order is granted, you can better prepare for each scenario and take proactive steps to improve your position. Whether negotiating terms, presenting new information, or fulfilling the conditions of a suspended possession order, staying engaged with the process can help you navigate this challenging situation and, where possible, protect your home.

How common is it to have a house repossessed in the UK?

According to UK Finance, their data from Q3 2024 reveals that there were 93,630 homeowner mortgages in arrears of 2.5% per cent or more of the outstanding balance in the third quarter of 2024; that’s 3% fewer than in the previous quarter.

Within the total, there were 32,860 homeowner mortgages in the lightest arrears band (representing between 2.5% and 5% of the outstanding balance). This was 5% fewer than in the previous quarter.

Meanwhile, there were 13,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, or 4% fewer than in the previous quarter.

UK Finance say that mortgages in arrears accounted for 1.08% of all homeowner mortgages outstanding, and 0.67% of all buy-to-let mortgages outstanding in the third quarter of 2024.

Furthermore, 990 homeowner mortgaged properties were taken into possession in the third quarter of 2024 (1% greater than in the previous quarter), and 710 buy-to-let mortgaged properties were taken into possession in the third quarter of 2024, unchanged from the previous quarter.

Meanwhile, Statista – a global and business intelligence platform – states that in 2023, between 176 and 424 homes in England were repossessed monthly. In Wales, this figure ranged between 14 and 32. The North West of England apparently recorded the highest number of repossessions in 2023, whilst the East of England, South West, East Midlands, and Wales had the lowest number of repossessions

Of course, you don’t want to become one of these statistics, so talk to your lender as soon as possible and explain your situation.

Is there another option available, to avoid repossession and minimise the impact on my credit score?

If a lender applies for a possession order, you are still entitled to sell your home. At this point, securing a quick house sale can provide you with the capital necessary to clear the arrears and either fund the purchase of a more affordable property, or give you a deposit for rental accommodation. Plus you won’t have a repossession registered against you, which would severely affect your chances of getting a mortgage in the future.

Summary: avoiding repossession through communication and proactivity

Missing mortgage payments can feel overwhelming, and the future may seem daunting, but taking immediate steps to address arrears and staying in regular contact with your lender can go a long way toward preventing repossession.

Most lenders prefer working out a payment plan instead of repossessing a property, so take advantage of any and all options available.

If you’re facing ongoing financial issues, seeking support from debt counselling services or exploring options like SMI loans or Universal Credit can help you avoid repossession and stabilise your situation.

Remember, it’s never too early to take action. By being proactive, you can navigate mortgage arrears and find solutions tailored to your financial circumstances, or choose to get a fast cash sale. Good luck. 

FAQs

Here’s a quick FAQ section to answer common questions related to mortgage arrears and repossession.

How many months can I be in arrears before repossession?

Most lenders consider repossession after three months of missed payments, but communication and partial payments may delay this process.

How long before a house is repossessed?

The repossession timeline depends on individual circumstances, but typically it takes several months for repossession to occur, allowing time for negotiation.

What are the repossession rules in the UK?

Current rules require lenders to treat repossession as a last resort. They must consider your repayment proposals and provide clear information on arrears before proceeding with court action.

Can I still get a mortgage with missed payments?

Yes, although missed payments remain on your credit report for six years, making future lending more challenging. Working with your lender to address arrears can minimise the impact on your credit score.

Further reading

If you’re facing difficulties with mortgage arrears and want more in-depth information on managing your finances to avoid repossession, several UK organisations offer valuable resources and support. Below are some websites where you can access free advice and further guidance on mortgage issues, debt management, and financial assistance.

These resources provide comprehensive information to help you make informed decisions about managing mortgage arrears, avoiding repossession, and exploring financial support options. But as I always say, be proactive and speak to your mortgage company and tell them what’s going on. It’s always best to be open and honest, no matter how hard it might be to admit you’re having trouble making your mortgage repayments.

Want to talk?

We hope you’ve found this article to be informative and helpful. And remember, if you’ve missed a mortgage payment, you’re facing repossession, or you can see a financial problem is on the horizon and you want a fast cash sale, call us.