Repossession Saturday, 14th March 2009

If you are in trouble with your mortgage payments, do not ignore the problem. When you fall into arrears, your lender should contact you, asking you to put the problem right. If they are not happy with your response, they should write to you, warning of court action

There are some key pieces of advice that you should follow if you are in arrears and at risk of losing your home.

Do not ignore your lender's warnings.

You must consider the following

Can I cut back on spending without hardship?
Can I rent out a room or increase my income in any other way?
Am I behind on other loans secured against my home?
If you feel that you can't make savings, don't give up. Visit your local advice agency - Shelter, Citizens Advice Bureau (CAB) or Consumer Credit Counselling Service.

Experts will advise on next steps and how best to negotiate with your lender. These organisations also have good advice on their websites.

Then talk to your lender. While some lenders will still push for possession, most only take action if there is no alternative.

And lenders must explore every avenue to keep people in their homes.

If lenders cannot prove this, judges now have the powers to throw out the case.

Be honest with your lender, be honest about your finances, the amount you can afford to pay and, importantly, don't try to overstretch yourself.

The lender will be far more helpful if they know you're really trying to pay your mortgage. This could stave off repossession.

If you ignore your lender, or cannot make payments they have asked for, the lender can apply to your local county court for a possession order.

Do not ignore the problem and hope it goes away