I am having problems paying my mortgage

If you are having difficulties paying your mortgage you should contact Housing Services and speak to an advisor. There are many solutions available depending on why you are having difficulties and how large your arrears are.

The earlier you take action the better. Do not ignore the problem! There are many ways in which Housing Services can assist in helping you to meet your mortgage repayments. If you do nothing your home may be repossessed and the Council may not have any duty to provide accommodation for you or your family.

Housing Services can

• check you are claiming all of the benefits you are entitled to,
• refer to organisations who can assist with a financial plan to see if there are ways for you to manage your outgoings affordably.
• negotiate with your mortgage lender with a view to setting up a repayment schedule or repayment holiday,
• negotiate and plan a repayment schedule between yourself and your mortgage lender,
• refer to organisations who may be able to represent you at Court to prevent an eviction if necessary,
• refer you to a specialised organisation who deal with debt problems, benefit problems or mortgage arrears,
• give advice on a range of other options relevant to you individual situation.

You may be able to raise your income by letting rooms in your house. There is often a high demand for lodgings.

Mortgage Repossession Procedure

If you have missed repayments and the lender is beginning Court actions there is a set procedure to follow.

a) Summons for possession

This is the first stage in the repossession process. A date and time is given for the hearing. The basic details of the lenders claim are given. The papers are issued by the Court, and include a reply form which can be completed and returned to the Court.

Shortly before the hearing, the defendant (borrower) will receive an affidavit (again sent by the Court) in which the lender details the full particulars of their claim (amount outstanding, arrears, details of payments, interest rates etc.).

b) The Hearing

Mortgage possession hearings may be held in private. This means the only people present are the judge, the defendant and the lender’s solicitor. The hearing is taped and one of the following orders are made:

• Adjournment - In most cases an adjournment will be for a 4 – 6 week period, with a new hearing set for the first available date after that time has lapsed. A judge will normally adjourn a case where one side (usually the defendant) is asking for information / time to negotiate with the other.
• 28 day possession order - This is the usual outcome where the defendant does not turn up at the hearing or submit any kind of proposal to the Court. If vacant possession has not been given to the plaintiff at the end of the 28 days, then they can apply to the Court for a Bailiff’s warrant.
• 56 day possession order - Where the defendant has no long term proposal to look to the Court, but is asking for more time, or is perhaps hoping to sell then the Court has the discretion to extend the time. Although the most usual is 56 days (2 months), they are sometimes prepared to give up to 6 months. At the end of the specified period if the plaintiff is not given vacant possession they can then apply for a Bailiff’s Warrant.
• Suspended Possession Order - This is the most common type of order made by the Court at the hearing. Basically the defendant puts a proposal to the plaintiff / Court to make certain payments on a regular basis. The Court orders that as long as these payments are made no further action can be taken by the plaintiff. If the defendant misses  or postpones even one of the agreed payments, then the plaintiff has the right to apply to the Court for a Bailiff’s Warrant.

c) Bailiffs Warrant / Warrant for possession/ Eviction Order

This is the stage at which someone could be forcibly removed from their home by the Court Bailiff. Defendants are usually given about 14 days notice of the appointment. The Bailiff will usually hand deliver the Order, and if the defendant is in, advise them how to apply to the Court to stop the Warrant being executed. The only way to stop a Warrant (unless the plaintiff withdraws it), is to clear the arrears (and in some cases the entire mortgage) in full, or apply to the Court for a suspension.

The earlier you seek help, the more chance you have of saving your home.

If your relationship is ending and you are having or think you will have problems meeting the mortgage see the information on Letting Rooms in your Home and Property Rights. It is often better to try to remain in the home you already have if possible. If you just sell your property and apply to the Council, you may be found to be Intentionally Homeless. Seek Advice from Housing Services first.

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