|
Please call us on 0845 055 8152 if you are being affected by a house repossession or any of the following as your circumstances may require immediate advice:
Personal debt in the UK is at an all time high and this is having a knock on effect to homeowners’ ability to keep up with their mortgage repayments. This is leading to record numbers of homes being repossessed.
Why You Can Be Repossessed
Quite simply your home may be at risk of repossession if you do not keep up with the repayments on your mortgage or any other loans secured against it.
Reasons for payment problems which lead to mortgage arrears commonly result from:
- Loss of job or main source of income
- Unable to work due to injury/illness
- Partner or Spouse moving out and not contributing towards payments
- Large debts on credit cards and other loans
- Extra expenses such as having a baby
As your home is security for the mortgage lender your home may be sold if you are unable to repay the loan payments.
How to Prevent Home Repossession
A common reason for mortgage arrears is due to individuals not being able to manage their personal debts in addition to the mortgage and any other secured loans. Other personal debts include: personal loans, credit cards, store cards, mail order catalogues as well as your normal monthly bills- all of these involve high monthly repayments and interest.
By managing and consolidating these unsecured debts you may be able to afford to stay in your home and prevent repossession. The most common forms are:
When you get repossessed you will lose your home. You will be homeless and will need to find accommodation elsewhere.
Why Stop Home Repossession
Having your home repossessed affects people financially but more importantly emotionally as there is such a vast sense of loss at losing the family home. Both parents and children often feel ashamed at their move from the status of 'owner' to that of 'renter'.
Repossession affects people in different ways but the majority of people are affected by:
- Change of social status and identity
- Effects on personal and family relationships
- Mental and physical health and well-being
- Quality of life
- Future hopes and aspirations
- Effects on the happiness and security of children
In addition to this finding alternative accommodation is not easy. Your options include:
- Buy another house (if you are able to get a mortgage)
- Rent
- Apply for social housing
- Stay with friends or family
- Go to a shelter
Consequences
Many people are under the belief that once their home is repossessed it will give them a fresh start financially. However the truth is the repossession will involve additional costs, such as court fees. You will also remain liable for any debt not paid for by the sale of the house, particularly if there is negative equity in the house- see Mortgage Shortfall.
Having your home repossessed has a big impact on your credit file meaning you will not be able to obtain another mortgage as you are now seen as a high risk customer. The main credit reference agencies Experian and Equifax will add your name to the Possessions Register.
It is vital you do all you can to stop your home being repossessed for you and your family.
Contact Debt Plan Direct for immediate advice if you are facing repossession on 0845 055 8125.
|
