Can You Stop a House Repossession?

It goes without saying, if you’re facing the possibility of home repossession, we feel for your situation. This is no doubt a stressful and anxious time in your life – the fear of losing your home can be overwhelming.

You no doubt have a lot of questions, the main one being whether or not you can stop someone repossessing your home. We’re here to provide answers purely as a guide, with information backed by our own in-house legal experts as well as experts around the UK who deal in home repossessions and similar situations.

Owning a home comes with its pros and cons. These cons arise predominantly during financial hardships, when some homeowners find it impossible to make their mortgage payments. Higher costs of living, inflated mortgage rates and stagnating wages can all quickly turn a dream purchase into a financial burden that threatens to pull you and your loved ones under.

If you are concerned about the home repossession process, this guide delves into what happens when a house is repossessed, how you can stop it from happening, and how you can avoid losing your home. All our information is backed by expert sources, helping you make an informed decision to put you and your family in a better position financially.

Table of Contents:

• Home repossession in the UK

• How does a house get repossessed?

• Typical home repossession process in the UK

• Important rules mortgage lenders must follow when conducting business

• Ways you can delay a repossession court hearing

• What happens if there is negative equity during repossession?

• Can you stop repossession of your home?

• What happens after your house is repossessed?

• How to avoid repossession by selling your property quickly

• How The Property Buying Company can help you stop repossession

• Frequently Asked Questions

Home repossession in the UK

It’s important to remember you’re not alone. Many people in Great Britain face home repossession every year. According to the UK Government, there were 1,146 repossessions between April and June in 2025. This was a 32% increase compared to 2024, which isn’t surprising considering the economic downturn faced by the UK and rest of the world in recent years. 

With the recent rise of mortgage rates and increased cost of living, people who have been paying their mortgages for decades are struggling to uphold the significantly increased debt. In 2024, the Express reported on a dad-of-three having his home repossessed after consistently meeting his mortgage repayment for 36 years. 

Mr Fleming’s mortgage repayments tripled to over £1,700 a month. When he wasn’t able to make the repayments, his house was sold by the lender for £100,000 below market value, netting Mr Fleming just £50,000 after the rest was used to pay off his debts and fees. After losing their family home, Mr Fleming and his wife ended up in a rented bungalow with their three children. 

“My three children are utterly traumatised and still suffering from PTSD after that day,” he said. 

These heartbreaking stories are commonplace around the UK, where homeowners can quickly go from feeling secure in their homes to being forced to sell and move into a rental or family member’s home. 

How does a house get repossessed?

Normally, a minimum of three months of missed payments is required before a bank or mortgage lender can begin repossession proceedings and record it on your credit history. However, according to Homeowner Management Services, a repossession expert in the UK, your lender will usually contact you about the outstanding debt after one missed payment. While they may not begin the repossession process at this point, they will want to know in detail how you plan to pay back the debt. 

This outstanding debt is called arrears, which you need to pay back if you want to avoid repossession. Depending on your lender, you should have time (up to one year after the first missed payment) to figure out a way to pay your arrears. This is stipulated in the UK Government’s Mortgage Charter, which most lenders and building societies must uphold.  

Home repossession should be a last resort and your lender should be open to discussing other options for ensuring you can continue paying off your mortgage. For example, if you’re up to date with your payment, you can usually switch to an interest-only plan for six months or extend your mortgage term to reduce the monthly payments. You may also be eligible for government support to pay off your mortgage, particularly if you’re already on Universal Credit.

If you’re unable to agree with your lender on a way to pay your outstanding debt, they will start the repossession process. 

Typical home repossession process in the UK

Repossession can take anywhere from six to 12 months. However, depending on your situation and options, you may not go through the entire process. If you want to avoid getting too deep into the following steps, honest and open communication with your lender is crucial.

Ignoring their emails or calls, lying about your financial situation or simply not being upfront about your needs can result in home repossession when you might’ve been able to find another option. Let’s look closer at the process and identify your options during each phase. These stages and options have been verified by information on Shelter, a non-profit that helps find housing for people who’ve experienced repossession.

Important rules mortgage lenders must follow when conducting business

Your mortgage lender must treat you fairly and uphold the principles and practices of the Mortgage Conduct of Business. According to Shelter, these rules and regulations, set by the Financial Conduct Authority, ensure that your lender must: 

• Inform you of any arrears in a timely manner.

• Maintain reliable and open contact during the entire process.

• Discuss alternatives to repossession and be open to other avenues, including offering their own options (e.g. delaying interest, extending the term or changing the mortgage plan). 

• Explain, in writing, why they reject a proposal for repaying your arrears and mortgage.

• Give you 15 days’ notice before taking you to court.

• Provide you with a list of all missed payments and the total arrears before your court hearing.

If you feel your lender hasn’t upheld the MCOB, you can submit a complaint to the Financial Ombudsman. If your lender is found to have broken the rules and regulations of the MCOB, your case could be dismissed by the court. 

Ways you can delay a repossession court hearing

If your lender has been successful applying for court action, there are some ways you could convince them to delay the hearing. If you can prove any of the following to your lender, you may not need to go to court right away. 

1. You’re waiting on:

• Universal Credit

• homelessness help from your local council

• an SMI loan from the Department for Work and Pensions

• mortgage payment protection insurance (i.e. you’ve lost income due to illness or redundancy)

2. You’re in the process of selling your home and can:

• show proof the property is on the open market for a realistic price

• provide an EPC and sale brochure

• allow your lender to speak with your estate agent and conveyancer, or

• show you have a legitimate cash buyer in the process of purchasing your property

In this situation, if you need to sell your house fast to avoid repossession, a cash buyer might be the best option. We can purchase property in as little as 7 days, which is 12x faster than the usual time it takes to sell on the open market (5-6 months). If you are on Universal Credit, selling your house may affect your benefits. 

What happens if there is negative equity during repossession?

If the value of your property is less than the amount you owe to your mortgage lender (i.e. negative equity) you may be forced to pay the difference after the property is sold. This amount is known as the ‘shortfall’ and is usually worked out after the property has been sold. 

Because this shortfall becomes your responsibility to pay back, lenders aren’t motivated to sell your property for a good price. As we’ve already covered, it’s not uncommon for lenders to sell repossessed property for well below market value. This could result in a shortfall you might not have had if you’d been able to sell the property before repossession through an estate agent or to a cash buyer.

If you do end up having to pay the shortfall, your lender should give you a fair and reasonable timeframe to do this. It’s not uncommon for this shortfall to also include any fees from the sale and accumulated interest on the mortgage loan while the lender has been waiting to sell the house. Yet another reason to get ahead of repossession and sell your property quickly. 

What if you can’t repay the shortfall?

If you’re unable to pay the shortfall over the agreed-upon timeframe, you could face serious legal and financial consequences. If you own the property with someone else, this shortfall may impact both owners and even fall to the other owner to pay. 

You may also have to face more legal charges from your lender or, as a last resort, apply for insolvency or bankruptcy. However, this will have long-lasting repercussions that may greatly hinder your life. It can impact your credit rating and make it harder to get a mortgage in the future, among other restrictions.

Can you stop repossession of your home? 

It’s possible to stop home repossession via numerous avenues depending on your situation and available options. While not all of these may stop it completely, they can still delay it long enough to give you time to sort out your finances or sell your home. 

We've detailed some of the most common ways for you below:

What happens after your house is repossessed?

Once your home gets repossessed, your mortgage lender will sell it to pay off your debts. You’re not necessarily out of the woods, because you may still have to pay the shortfall (negative equity) if the sale revenue doesn’t cover your debt and any other fees or interest accrued during the sale process. 

This is why it can help to maintain control of your sale by selling before repossession to a cash buyer. If you are in control of your own sale, it means that you won't have to cover all the fees the mortgage company would incur. You're likely to be left with a lot more of the equity to cover your debt. You may even have some left over to help sort out a new housing arrangement.

When the house is repossessed and sold, you will have to move out, and it can leave you in a situation of homelessness, debt and a damaged credit score. Depending on how long it takes to sell, you’ll still be liable to make payments towards your mortgage before it sells.

By selling fast to a cash buyer who covers all fees, you can avoid paying back so much after the sale. People have ended up paying back more than they originally thought because of sale fees, interest and other factors that only come into play if you don’t sell before repossession. 

Where can you live? 

If you face repossession in the UK, you may qualify for council housing, but eligibility varies based on individual circumstances. Local councils are also obligated to assist those who are homeless or at imminent risk of homelessness.

If you’re at risk of repossession without alternative housing options, contact your local council as soon as possible, as housing availability and waiting lists vary by area. Other options include private rentals or housing associations.

Councils have a duty to help those threatened with homelessness within 56 days, subject to certain criteria. Eligibility depends on factors like unintentional homelessness, priority needs and local connections. Priority needs are assessed considering vulnerable household members, including pregnant women, dependent children, the elderly, individuals with health issues and domestic violence victims.

You may also be able to get support from family members or friends if your local council can’t help. There are also charities in the UK that help find housing for those facing homelessness. Contact Shelter or Crisis if you need their help. 

Can you get another mortgage after your house is repossessed? 

It isn't impossible to get a mortgage if you have had a previous repossession, it's just much harder. Lenders take repossession very seriously and it’s one of the most severe cases of bad credit, according to Expert Mortgage Advisor. 

Fortunately, there are lenders out there who will accept applications from people who’d had their home repossessed in the past. There are even lenders who specialise in these kinds of loans with specific products for your situation. However, they will still assess you against a strict criteria when deciding whether to approve your loan. 

There are a few factors that will affect how easy it is to pass this assessment and get a mortgage after a repossession. 

How to avoid repossession by selling your property quickly

Repossession can take six to 12 months from the first missed mortgage payment, so selling your house quickly can stop you even getting to the point of repossession. You need to find a buyer or estate agent who specialises in quick sales. 

It’s important to choose a legitimate cash buyer so you don’t get scammed and end up in a worse situation. As a genuine cash house buying company, we can help you sell your house or flat in as little as 7 days. We typically close sales within 2-3 weeks, which is plenty of time to get the equity out of your house and pay off your debts before you have to go to court and go through repossession. 

Can you sell your house with mortgage arrears? 

Absolutely. It’s legal in the UK to sell your house even if you have arrears. This is a known and supported way of getting ahead of your mortgage debt and avoiding repossession. Citizens Advice offers guidance on selling your property to help pay off mortgage debts. 

They make it clear that you will “still be responsible for mortgage payments, buildings insurance and other costs until your property is sold.” This is yet another reason why many people in financial trouble choose to sell quickly to a cash buyer. This way you can clear your debts without waiting months on the open market, building up more fees, interest and other costs.

How The Property Buying Company can help you stop repossession

With over 100 years of combined property industry experience, we’ve catered to various circumstances, including repossession. We’re an honest and transparent cash buyer who can handle everything for you, including covering all legal and survey fees. So you don’t need to find more money to pay for sale costs when you’re already struggling financially.  

While we can’t offer full market value, our transparent service provides a fast sale, usually within as little as 7 days, without estate agent fees, mortgage approval, or ongoing utility and council tax bills. 

We will usually offer around 80% to 85% of your home’s market value, varying based on property condition and location. Considering the money you save when selling quickly and without any fees, this lower value may not be so significant.

Our service benefits include:

• A fair, free and no-obligation cash offer of 80-85% market value depending on various factors.

• A flexible timeline (1-4 weeks) we can tailor to suit your needs.

• All legal and survey fees included, with no hidden costs.

• Opportunity to retain some equity and pay back less interest and other fees.

• Assistance with onward purchases.

• Expert advice and support throughout.

• Opportunity to avoid repossession and resulting bad credit. 

• Opportunity to be in a position to get another mortgage loan in the near future.

Selling to avoid repossession is a significant decision, which means you need to trust your buyer. We are an accredited member of both The Property Ombudsman (TPO) and the National Association of Property Buyers (NAPB), ensuring high standards and fair treatment. Our commitment to professionalism is echoed in our 4.5-star rating on Trustpilot from about 2,500 reviews. 

If you’re ready for a free, no-obligation cash offer, simply submit your postcode online. Someone from our team will get in touch with you to discuss your situation and provide an initial cash offer. 

Frequently Asked Questions