How Many Mortgage Payments Can You Miss Before Repossession?

Facing the possibility of your property being repossessed can be an extremely stressful and serious situation, but it isn’t one that can just happen overnight. 

Whatever your circumstances, repossessions can take many months and can be hard when you need to be proactive with your research about what to do next. 

In this guide, we’re taking a look at repossession as a whole, what it means to be in mortgage arrears and what you can do about it as a homeowner.

Table of Contents

• What are mortgage arrears?

• Can you miss a mortgage payment?

• What happens when you are in arrears?

• What should I do when the arrears process starts?

What are mortgage arrears?

Mortgage arrears happen when you miss a payment of your mortgage and you have payments overdue on your property. You’ll probably be familiar with the warnings that most lenders include on their mortgage pages online—they’ll typically read something like this example from Santander:

“YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.”

In technical terms, a mortgage repayment goes into arrears when you first miss a payment. However, a handful of mortgage lenders give an unofficial period of around 15 days before they contact you about missing a payment.

Even if you do miss a payment and do not manage to pay straight away, repossession action will not take place immediately. Lenders usually don’t want to take any of your possessions; they will want to use this strategy as a last resort.

Repossession will usually be taken when you have missed at least three payments, but some lenders will postpone this even further than three payments.

Read more: Shelter’s advice on what to do if your mortgage lender starts court action

Can you miss a mortgage payment?

A mortgage lender won’t repossess your house after you’ve missed a single mortgage repayment, but it will ask questions about why you have failed to make it. You’ll probably be contacted by your lender to ask if you can make the payment, but you should bear in mind that continued missed payments will affect your credit rating. 

Getting in touch with your lender can help, as Charles Roe, UK Finance’s director of mortgages, told The Standard: 

Any lender has to provide a homeowner with alternatives to repossession as part of any ongoing discussions about rectifying the problem. As defined on Shelter’s guide to the repossession rules lenders need to follow, these are: 

• Delay interest payments

• Extend your mortgage term

• Change the type of mortgage you have

• Add the arrears onto your total mortgage debt

Despite the fact there has been a 47% year-on-year increase in repossessions, according to recent UK Finance figures, it is quite an expensive process, so many mortgage companies will try everything to get you to make the missed payments before starting any official process. 

What happens when you are in arrears?

Mortgage lenders can’t just turn up to your home and make you leave. They must follow a legal framework known as Pre-Action Protocol for Possession Claims based on Mortgage Arrears.

This process makes sure that you are fully notified about what is happening as the owner of the home, so it allows you to solve the issue before any repossession actions begin.

During the 15-day period after your missed payment, you’ll likely be contacted by post. If you can’t be contacted, you will eventually be told that if you don’t pay the arrears to your lender, you will be taken to the county court for the repossession of your house.

As mentioned, the last thing that mortgage companies want to do is repossess your home, so proceedings might not begin until around the third month of missed payments, which is when repossession can get serious.

The house repossession process will look something like this:

Read more: Eviction for mortgage arrears guidance from Citizens Advice

What should I do when the arrears process starts? 

To start with, never ignore any letters you receive from your lender. Contacting them immediately can slow or even halt the repossession process. Ignoring the situation can make it accelerate.

If you can make a payment or even a part payment, then do so. Even suggesting a repayment plan to your lender to settle the arrears is a positive step forward.

Under the Pre-Action Protocol we mentioned earlier, the lender needs to give you the opportunity to discuss the matter with them. This can include claiming against any mortgage payment protection insurance, claiming through government support you’re entitled to, or rescheduling any payments you have left on your repayments.

Read more: Can You Stop a House Repossession?

There are several things you can do to try and stop a repossession before it even goes to the courts—here are a few tips:

Can I sell my house before it gets repossessed? 

If you find your home at risk of repossession, one of the best ways you can recover the money that you have already paid into it is through selling. 

If a sale means you can cover the cost of your mortgage, as well as the outstanding repayments, and still come out with money, then it is the best option for you.

A cash buyer is the best way to ensure a fast house sale as the funds to buy your house outright are already there. Cash buyer companies like us will allow you to complete the sale in a timeframe that suits you, so you can remove the stress involved in a possible repossession situation. 

Get in touch today by providing your postcode below and we’ll be in touch with a free cash offer within 24 hours.