Facing Repossession? You Have Options
What happens when mortgage payments are missed, the help available in Wales, and how selling yourself compares with repossession.
Short answer
Act early. Contact your lender, get free debt advice, and check whether Help to Stay – Wales can help you keep your home. Lenders must follow a court pre-action protocol before seeking repossession. If keeping the home isn't realistic, selling it yourself before repossession usually leaves you better off than a lender's sale.
How long before my lender can repossess my home?
Not overnight. Before going to court, lenders must follow a pre-action protocol: talk to you, consider reasonable proposals to pay the arrears, and give you time to get advice. Repossession then needs a court order. The whole process usually takes months, and acting early keeps more options open.
- Missed payments: the lender writes to you about the arrears.
- Pre-action stage: the lender must try to agree a way forward with you.
- Court claim: you receive court papers and a hearing date. Never ignore them; fill in and return the defence form.
- Hearing: the court may give you time, make a suspended order (you stay if you keep to agreed payments) or a possession order.
- Eviction: only if a possession order is made and not complied with.
Free legal advice is available on the day at court through the Housing Possession Court Duty Scheme.
What help is available in Wales?
Help to Stay – Wales is a Welsh Government scheme for homeowners struggling with their mortgage. It offers free specialist debt advice and, if eligible, an interest-free equity loan for five years to reduce your payments. It currently runs until 31 March 2027.
To qualify, household income must be under £67,000, the home must be in Wales, be your only or main home and be worth less than £300,000, and the main mortgage should normally be on a repayment basis. The loan can be up to 49% of the home's value. Full details: gov.wales: Help to Stay – Wales.
Free, independent advice is also available from Shelter Cymru and MoneyHelper. If you receive certain benefits, you may be able to get a Support for Mortgage Interest loan.
Can I sell my house if it's being repossessed?
Yes. Until the lender actually takes possession you're still the owner and can sell. If the sale will repay the mortgage, the arrears and the costs, lenders are usually glad to be repaid. If it won't, you'll need the lender's agreement before the sale can go ahead.
Tell your lender, and the court if there's a hearing, that you're selling. A realistic sale with a timetable can help when asking for more time.
Is selling better than letting the house be repossessed?
Usually, yes. A lender's sale often fetches a lower price, and its costs are added to what you owe. Any shortfall stays your debt. Selling yourself lets you control the price and timing, and may leave you with money left over after the mortgage is repaid.
What if I owe more than the house is worth?
That's negative equity. You can still sell, but only with your lender's agreement, sometimes called an assisted voluntary sale. Any shortfall remains a debt, so agree an affordable way to repay it and get free debt advice before you commit.
How do my options compare?
Keeping the home with help is the first thing to explore. If that isn't realistic, selling yourself (through an agent or to a cash buyer) keeps you in control of the price and timing, while repossession hands both to the lender and usually leaves a larger debt.
| Keep the home (with help) | Sell through an agent | Sell to a cash buyer | Repossession | |
|---|---|---|---|---|
| Who controls the price? | Not applicable | You | You (agreed offer) | The lender |
| Typical timing | Depends on agreeing a plan with the lender | Often 3–6 months | 7–28 days, on a date you choose | After a court order |
| Costs | Arrears still have to be repaid | Agent and legal fees | No agent fees; we usually contribute to legal fees | Lender's sale and legal costs added to your debt |
| Shortfall (if any) | Not applicable | Your debt | Your debt | Your debt, often larger |
Protect yourself
- Be wary of anyone who asks for an upfront fee to 'stop repossession'. Free advice is available.
- 'Sale and rent back' schemes must be authorised by the Financial Conduct Authority. Check the FCA register before agreeing to one.
- Don't sign anything under pressure. Use your own solicitor, and get an independent valuation so you know what your home is worth.
Frequently Asked Questions
Lenders must consider reasonable proposals before going to court, and a court can also give you time. Show what you can realistically afford; a debt adviser can help you prepare it.
Yes. Tell the lender and the court that a sale is under way. A realistic sale with dates can help when asking for more time.
If the sale completes and the mortgage is repaid before the lender takes possession, the possession case ends. Timing matters, so tell any buyer your court dates up front.
Yes. Every enquiry is treated in complete confidence.
None. The offer is free, and you can turn it down at any stage before contracts are exchanged.
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