Around 30% of the UK households are reported to own mortgaged homes. Often people have no choice but put their welfare at risk: you will simply lose your home in case you are unable to meet the mortgage repayment requirements. Quick actions are needed when you are close to falling behind the regular payments and especially if there is a court listening concerning your mortgage.
Surely and importantly, you are to start with the budget planning. Consider all the income sources and corresponding amounts, as well as the items of expenditure. Check out the local discount policy of the Council Tax – a tax collected on the domestic property. Depending on the situation, you can get a significant reduction on your tax amounts or even get totally released from payments.
As long as you decide to find an additional source of income from a second mortgage or a secured loan to cover the initial mortgage repayments, mind that it is another risk of losing your home in case of payment failure, so double check your budgets and make sure you can afford it.
In fact, it is often a good idea to get professional legal advice on debt struggles. For that, you have a number of online databases and legal portals storing data about law firms and qualified solicitors in various fields and locations, such as Suffolk solicitors.
Mortgages with variable rates grow in price in accordance with interest rates on the financial markets, and this is when you are to pay higher credit amounts. Unfortunately, it doesn’t always work the same in the opposite direction – find out all the details on your variable rates’ mortgage. In addition, do not forget to delve into the exact terms of the mortgage rates’ fixed periods to be sure you can face possible changes when the first fixed period is over.
How to avoid eviction for mortgage arrears
The moment you fall behind the mortgage payments the lender will urge you to cover them. Otherwise, you will be evicted from your house. In other words, they will take possession of your home in order to sell the property and, therefore, repay the debt. Possession action is associated with a complete legal procedure that your lender will have to perform. However, it is still possible to stop the court hearing if you manage to negotiate an arrangement.
If you fail to negotiate out of court, it is recommended to find a solicitor for assisting you with precious advice on the matter, as well as presenting your interests in court while applying for a suspended possession order. This particular suspension means that you are allowed to live at home as long as you follow the order terms and conditions.
In the worst-case scenario, the judge may grant the lender an outright possession order, given you are unable to make a reasonable arrears’ repay offer to the lender. Thus, you will be obliged to leave the house by an indicated date, while the lender will take possession of all your property.
There are still some ways to avoid eviction. Even if the court has made a decision on an outright possession order, you can suspend it by applying for the order to be suspended on the ground of becoming able to afford the arrears. For this, you are to ask for an N244 form. On top of that, you are free to appeal against the order at all and apply to a higher court within 21 days since the court decision. The appeal, however, will only be successful when the preconditions are worthy: there were incorrect procedures in court or the facts used by the prosecutor are actually wrong. In any case, you had better take a proper legal advice on that.
Do your best to prevent the eviction based on mortgage arrears: not only will you lose your home, but you also might face some problems when applying for a new mortgage in the future. All your payments’ details are filed and stored by such credit agencies as Equifax and Experian. The agencies are used as reliable referees for your credit rating by all lenders, so that might also affect your chances of taking a simple loan.