How Can I Stop The Repossession Of My Home?
The repossession of your home can be a scary time, often caused due to the build-up of arrears on your mortgage or another loan you’ve taken out against your property. These arrears can build up over time if payments continue to be missed and the only way your lender can secure the investment you owe them is by repossessing your home.
It’s an awful place to find yourself in and may be due to other stresses such as redundancy, sickness, divorce or bereavement. But there are a number of things you can do to prevent finding yourself in the position where repossession may occur, or if you are already there, then don’t worry you still have a number of options open to you such as the tenanted services we offer here at A1 HomeBuyers UK, but we’ll get to that later.
Want to learn more about our tenanted services and get a free cash quote for your home now then simply click here.
Build a buffer
Putting a little bit away into your savings each month can help you to build a cushion that if you fall into the circumstances were repossession may be on the cards, you can use your savings as an extra payment to your lender. Here most mortgage lenders will provide a bit of flexibility allowing you to reduce your mortgage rate or even take a payment holiday if you can show them a willingness to pay off your mortgage by providing an extra advance through the use of such a buffer.
Check if you’re entitled to any benefits
Depending on the reason you’ve found yourself in such a position you may be entitled to a number of benefits which may help you keep your home from being repossessed. If you are made redundant or suffer an accident or illness and you have mortgage payment protection insurance you could help cover the costs of your mortgage for up to a year or even two, helping you to try and get back on your feet. If you don’t have MPPI you can still register for social security services such as jobseekers allowance which will at least help you bring in some money and help you continue to pay money towards paying off your mortgage, while you search for a new job.
As soon as you realise your personal circumstances may be heading in the direction were a repossession of your home may be a possibility, then instead of burying your head in the sand which many individuals choose to do, you should instead get in touch with your lender and open the channels of communication. Most lenders will want to help you and ensure you keep your home, as in the long run they make more money by you paying your mortgage off than they do by repossessing and having to sell off your home to reclaim their money. So, by reaching out as early as possible and opening up the communication channels with your lender you enable the chances that something can be done, be it a payment holiday, changing your mortgage repayment amounts by extending your mortgage term or swapping to an interest-only mortgage. Open communication is an essential part of helping prevent your home from being repossessed.
Selling your home
If all else fails, you may be better off selling your home, before it gets repossessed. By selling your home you may be able to recover all of your mortgage and debt, without affecting your credit score, limiting your buying options in the future, which a repossession would impact. Obviously, if you’re looking to keep your home this isn’t an option, but it should always be taken into consideration.
Our Tenanted Properties Service
Here at A1 HomeBuyers UK, we can also help prevent your home from being repossessed. Our tenanted properties services mean we’ll buy your house from you, while renting out the property to you, allowing you to pay reduced amounts on rent, and so preventing your home from being repossessed while allowing you to continue to live in it. Our home buying service can be completed in as little as seven days, meaning that even if you’re at significant risk of your home being repossessed we can help.
So there you have some fantastic tips to help you prevent the repossession of your home, and if you’d like to find out more about our tenanted property services or you’d like to see what we could offer you for your home then request a free cash quote today!