Feefo -/5 • - reviews (last 12 months)
0208 787 5860 info@openpropertygroup.com
Please search for the address of the property you wish to sell, not your home address Got it
Cash offer

Property repossessions are on the rise as the cost of living crisis bites. In fact, according to Government figures, mortgage repossessions have increased by a staggering 93% compared to last year. With fuel costs staying stubbornly high and the weekly shop more expensive than ever, budgets will be stretched like never before – especially among the mortgage paying masses.

With the threat of running out of money real for many, Open Property Group brings you its guide to mortgage repossessions for 2023.

What is a mortgage repossession?

The threat of a mortgage repossession only applies to people who still have an amount left to repay on their mortgage as, theoretically, the lender owns the property until the full mortgage amount is repaid. A repossession is when your mortgage lender takes legal ownership of your home. It usually happens when the owner has failed to keep up with mortgage payments, although it is a strategy used as a last resort.

Are there any interventions to prevent a mortgage repossession?

If you're struggling to pay your monthly mortgage repayments, it is important to talk to your lender as soon as possible. There are a number of ways that lenders can help you, such as increasing the length of your mortgage term, changing you to an interest-only mortgage or giving you a mortgage payment holiday.

What happens if I start falling behind with my mortgage repayments?

If you fall behind with your mortgage payments and do not proactively contact your lender, they will contact you to ask how you intend to pay back your arrears.

If you can't agree a repayment plan, your lender might start court action to repossess your home. This may result in you being asked to attend a repossession hearing during which the court will decide about the future of your home.

If an outright possession order is given, it means you would have to leave your home within a set timescale. If you refuse to leave, bailiffs can attend and they may ask the police to remove you from the property – it can be a frightening situation that’s best avoided.

Alternatively, the court could issue a suspended order allowing you to stay in your home but with a repayment plan to pay a set amount of money on top of your normal monthly mortgage payment.

How can repossession affect me?

A repossession can have a significant impact on your mental and financial health, both in the short and long term. Not only does a repossession mean that you have lost the roof over your head, it can severely affect your credit score, impact your homeowning prospects in the future and curtail your ability to ever borrow money again.

How can Open Property Group stop a property repossession?

Open Property Group can step in and buy your property from you – even if you have fallen behind with your mortgage repayments. Our recommended solicitor can take on your case and deal with everything at no cost to you, halting demands for repayments and stopping the mortgage repossession in its tracks.

If you are worried that your home is at risk of being repossessed, contact us as quickly as possible. We can assess your property, put together a cash offer and in many cases, exchange contracts within 24 hours of receiving the legal documents so we can cancel the repossession proceedings.

Selling to Open Property Group is a sensible option when you want to avoid having a repossession on your credit file. We allow many homeowners in this situation to stay in their property to sort their affairs, even after we have exchanged contracts. It’s breathing space you won’t find on the open market when selling through an estate agent.

Published on 31st January 2023

Get a FREE cash offer

Confirm the property address please
Please search for the address of the property you wish to sell, not your home address Got it