With soaring interest rates and the high cost of living, more and more people are facing mortgage repossession every day. According to the Mortgage and Landlord Possession Statistics January to March 2023, published by the Ministry of Justice, in 2022 there were 2,889 mortgage possession claims from January to March 2022 in the UK. By the same period in 2023, this had increased by 40% to 4,035. At the time of publishing this article, the statistics for 2024 are not available but we can only imagine that a further increase in mortgage repossessions has occurred.
Mortgage lenders are regulated by the Financial Conduct Authority and have a very strict set of rules that they must comply with in order to bring a claim for repossession to Court and, whilst it may not feel that way when you’re on the receiving end of threats of Court proceedings, Mortgage lenders tend to view repossession proceedings as a last resort, when all other avenues have been exhausted.
Our Mortgage Repossession Solicitors have helped clients all over South Wales in successfully defending these possession claims, meaning that our clients have been able to remain safely and securely in their homes.
Mortgage Repossession – Rent Arrears
Part of the process that Mortgage lenders are required to comply with includes corresponding with you in relation to the arrears, setting out details of the extent of the arrears and asking you to contact them to resolve matters. Sometimes a phone call to the lenders can be extremely helpful and will result in an agreement being reached between you. Many times, however, the letter is sent merely as a matter of compliance with the regulations and telephone discussions to discuss matters are fruitless.
Our skilled negotiators are best placed to enter into correspondence upon your behalf with your mortgage lender and can, very often, reach an agreement with the lender that will result in affordable staged repayment of any arrears and, more importantly, you keeping your home.
It’s always best to obtain specialist legal advice as soon as possible, and preferably before Court proceedings for possession are commenced. We can’t give you financial advice, but we can assist by liaising with the lender on your behalf and seeking to resolve the situation before Court proceedings are issued.
Even if you haven’t dealt with arrears letters and have received a Court date – it’s still not too late to contact us for help. We can come with you to Court, guide you through the process, explain your situation to the Judge and argue on your behalf that no Order for Possession should be made against you. Very often, even in the Court room, with the Mortgage lender’s Barrister and the Judge present, with all the evidence of the arrears in front of them, we are able to successfully argue that an Order for Possession against you would be unjust.
Mortgage Repossession – End of Fixed Term Interest-Only Mortgage
Many people find themselves caught in a situation where they have taken out an interest-only mortgage on the basis that, at the end of the mortgage term, they will have been in a position to pay off the capital element of the mortgage. For example, 25 years ago you may have taken out an interest-only mortgage, having some form of alternative savings or investment in place that you envisaged would be sufficient to repay the capital amount of the mortgage. You have effectively been paying the interest on the capital amount for 25 years, but nothing off the capital. Many people were persuaded to take this option as the lure of lower monthly payments for an interest-only mortgage, as opposed to a repayment mortgage, and the expectation that 20 – 30 years later they would be in a position to pay off the capital amount, was an attractive proposition at the time.
Unfortunately, however, in many cases, people have found themselves in very different situations than they had envisaged when taking out the mortgage decades previously. This means that, once the interest-only mortgage term has ended, they have not had funds in place to repay the capital loan.
The Mortgage Lenders may then seek to obtain an Order for Possession of the home in order for them to recoup their capital.
Again, our specialist team are experienced in liaising with Mortgage lenders in seeking to achieve a resolution of the issue before Court proceedings are commenced.
Further, as with Mortgage Possession claims based on arrears, if you’ve reached the end of the line and have received a Court date, we can still help by joining you at Court and representing you. We have very often been successful in persuading the Court that an Order for Possession against our client would be unjust, and that alternative solutions can be agreed.
To speak to one of our Mortgage Repossession Solicitors please contact our Cardiff Litigation Team on 02920470909 or via email to [email protected].