If you are a homeowner, you may find yourself falling into mortgage arrears in this current climate. This may leave you open to a claim by your lender for the repossession of your property. We would advise you to contact your lender and seek to negotiate a payment proposal agreement before your lender applies through the Courts for possession of your property.
If you are unsuccessful in your negotiations and the lender does apply for possession of your home through the Court, you may be able to (depending on what type of agreement you have with your lender):
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Apply for a Time Order – This will allow you to reduce your monthly remortgage payments by varying the term of the loan or by varying the interest rates on your loan.
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The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend monies to consumers to follow certain rules. These rules include specific requirements of the form and content of the agreement, the method of calculating APR of the total charge for credit, and the procedures to be adopted in the event of default, termination and early settlement of the credit. You may be able to raise a defence under the Consumer Credit Act 1974, for non-compliance with the Act, (if the agreement is regulated under the Consumer Credit Act 1974).
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Ask the Court for time to sell your property, or
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If you are unsuccessful in defending the proceedings, you may be in a position to ask the Court for a Suspended Possession Order. This is when a Judge grants the lender possession of your home, but the Judge would have decided that it is not reasonable for the Possession Order to take place immediately, so you will be allowed to remain in your home provided you keep to the conditions imposed by the Court. The conditions will usually be to make ongoing mortgage payments (current monthly instalment “CMI”) and pay an amount towards the mortgage arrears each month (contribution towards arrears).
