For homeowners, facing the possibility of repossession is a stressful and overwhelming experience. However, understanding the process can help you feel more in control and know what to expect. In this guide, we’ll explain what house repossession is, how long it takes, and what steps are involved. We’ll also discuss your rights, your lender’s responsibilities, and answer key questions about house repossession in the UK.
What is house repossession?
House repossession is the legal process where a mortgage lender takes possession of a property when the borrower fails to meet mortgage payments. It typically occurs after repeated missed payments and as a last resort when alternative arrangements or repayments fail. Usually, the lender sells the repossessed house to recover the outstanding mortgage balance.
Repossession can happen to both homeowners and landlords if buy-to-let mortgage payments are not made. The process in the UK is governed by strict laws to ensure fairness and to provide homeowners with opportunities to resolve their financial difficulties before repossession becomes final.
How long does repossession of a house take?
The time it takes for a house repossession to be completed can vary depending on individual circumstances, court schedules, and how quickly actions are taken at each stage. In general:
The process usually begins after three to six missed mortgage payments when a lender initiates contact.
From the first notice to the court hearing, it may take a few months depending on negotiations between the borrower and lender.
Once court action starts, repossession can be ordered within four to eight weeks, but additional delays are possible if the borrower seeks more time to sell or repay.
Eviction by bailiffs could take another two to three weeks after the possession order is granted.
Overall, the repossession process in the UK typically spans from six months to a year.
House repossession process explained
1. Your lender contacts you about missed payments
The first step begins when you miss mortgage payments. Lenders are required to contact you and try to work out a repayment plan. They may offer options such as:
Extending the term of your mortgage
Reducing payments temporarily
Allowing a payment holiday
It’s important to communicate with your lender, as ignoring their attempts to contact you can escalate the situation more quickly.
2. Your lender begins court action
If no resolution is reached, the lender will send a formal notice informing you of their intention to take legal action. This is known as a ‘pre-action protocol’ in mortgage cases, requiring lenders to demonstrate that they made reasonable efforts to avoid repossession. The Pre-action Protocol for Possession Claims came into effect on 19 November 2008, it's used to help make possession claims a last resort.
3. The court sends paperwork
You will receive court documents, including a claim form (Form N5) and details of the hearing. It’s crucial to read these carefully and respond, as this gives you the chance to explain your financial situation to the court.
4. The possession hearings begin
At the hearing, both you and the lender present your case. You can request legal representation or free advice from housing organisations. The court will decide if repossession is justified or if alternative solutions, such as a payment plan, are more appropriate.
5. The court makes a decision
Depending on the outcome, the court may:
Dismiss the case if you’ve already made an acceptable arrangement with the lender.
Adjourn the case to give you more time.
Issue a suspended possession order if you agree to make payments under strict conditions.
Issue an outright possession order giving the lender the right to repossess your home.
6. Eviction and sale of property
If a possession order is granted, you’ll be given a date to leave. Bailiffs can be authorised to carry out the eviction if you do not leave by the specified date. The lender will then sell the property, usually through an auction or estate agent, to recover the debt. Any remaining funds after the mortgage and legal fees are paid will be returned to you.
What your lender has to do before they can take you to court
Before taking legal action, lenders in the UK must follow strict guidelines to give borrowers a fair opportunity to resolve the issue. These steps are part of the pre-action protocol for possession claims based on mortgage arrears:
Provide clear communication: Lenders must send a formal notice explaining the missed payments, total arrears, and the consequences of non-payment.
Offer assistance and alternative solutions: They must discuss repayment options or other ways to prevent repossession, such as extending the mortgage term or switching to interest-only payments.
Reasonable waiting period: Legal action is usually initiated only after three to six missed payments, allowing time for negotiation.
Provide written notice of legal action: The borrower must receive written notice at least 15 days before court proceedings begin.
Share details of any court action: If court action proceeds, all paperwork must be transparent and provide the borrower with clear instructions on how to respond.
💡Editor's insight: "Your lender will need to follow the steps outlined by the Financial Conduct Authority (FCA) before they take action. You can find more information in the FCA's handbook on the 'Mortgage Conduct of Business'."
Who can and can’t a lender sell to?
In the UK, lenders must act in your best interest when selling a repossessed property. They cannot sell to themselves or their associates at a below-market price. The sale must be carried out fairly, aiming to achieve the best possible price in the circumstances. If you suspect misconduct, you can challenge the sale or seek legal advice.
When can a bailiff be asked to evict you?
A lender can request bailiffs to evict you after a possession order is granted and if you have not vacated the property by the specified date. The lender applies to the court for a warrant of possession, and bailiffs will send a notice informing you of the eviction date. You may still be able to request a delay by applying to suspend the warrant if you can demonstrate a significant change in your financial circumstances.
Does the lender have a right to repossession?
Yes, under the terms of a mortgage contract, the lender has the right to take possession of the property if payments are not maintained. However, UK law requires them to follow a fair and regulated process, including:
Contacting the borrower to explore repayment options
Sending a pre-action protocol before starting court action
Proving to the court that repossession is necessary as a last resort
FAQs
What is the law on repossession in the UK?
House repossession is governed by the Mortgage Repossessions (Protection of Tenants) Act 2010 and related legislation. These laws ensure lenders act fairly and give borrowers time to rectify payment issues before losing their homes.
Can your house be repossessed without notice?
No, lenders must follow legal procedures, including providing adequate notice and obtaining a court order before repossession. Immediate repossession without notice would be illegal.
Final thoughts
House repossession is a complex and emotionally challenging process. However, knowing your rights and working with your lender can help you find solutions to avoid it. If you face financial difficulties, seek advice early from a legal professional to explore your options and protect your home.
References
Disclaimer: This article only provides general information and does not constitute professional advice.