Hell Stone

Unfortunately, repossession is a reality that many home owners are faced with every day in the UK, but there are certain steps you can take before it gets to this stage in a bid to keep possession of your home.

Buffer

Most mortgages are pretty flexible which means that when you can afford it you’re allowed to pay more than your agreed monthly payments. If you do this for a period of time while you can afford to do so, if you do have a period of financial struggle then you’ll have built up a buffer of excess payment which means you may be able to pay a reduced monthly payment, or even take a payment holiday to allow you to get back on your feet.

Of course, this is an option that’s only available if you’ve paid in more than necessary before hitting financial hardship, so making over payment should never be seen as throwing away your disposable income. At the very least it’ll allow you to pay off your mortgage ahead of the planned term and should you hit any financial problems, you’ll be glad of the break.

Budget

Something that almost everyone takes for granted but is an essential if you’re going to spend and save effectively, is budgeting. Proper budgeting will allow you to keep track of all your regular income and outgoings, along with any other spending which will help avoid any further financial problems in the future.

Keep in touch with your lender

You need to remember that your mortgage lender isn’t there to punish or judge and essentially they just want you to repay your mortgage with the least hassle and expense to them as possible. If they have to start repossession proceedings, then it’s a very costly action and something that they’d much rather avoid. If you keep in touch with them in times of financial difficulty to make them aware of your situation, they’ll offer advice and any kind of payment relief they can to help you get back on track. If you avoid them though, they’ll be unaware of your difficult circumstances and will therefore be forced to begin the time consuming and expensive repossession process.

Selling your home

If a period of financial hardship is likely to become long term – maybe you’ve had to leave your job because of illness, to care for a loved one or you’ve been made redundant and are struggling to find another job – it’s certainly worth considering selling your home and downsizing to something more affordable. If your lender is forced to start repossession proceedings then it’ll become much more difficult for you to secure a mortgage in the future.

A lot of people think that selling their home is costly, time consuming and likely to force them into further debt, but that doesn’t always have to be the case. By selling your home to a company like WeBuyAnyHouse, which are guaranteed to buy your house for up to 90% of its market value and offer significantly reduced fees compared to traditional agents you could sell your home instantly and have the funds you need to purchase your new, more affordable home in as little as 14-days.

Communication is essential in times of hardship, especially if your home is on the line. However, this list is by no means the limit of things you can do to avoid repossession, so be sure to read up on whatever you can before deciding this is your only option.