Assessing Your Finances To Avoid Repossession

The first step is to work out where you are - how much do you owe, and how far behind have you fallen? If you are over two months behind, and have received a court order for repossession of your home, there are still options to avoid this.

If you are one month behind, the situation is of course much less critical than if you are over six months late on mortgage payments - the less severe your default, the more lenders who will be able to help.

Should you be further behind, this demonstrates a higher risk. Revolution Brokers do work with specialist lenders who may be able to support your application, but usually:

• Fees will be higher.
• Interest rates will be less competitive.
• You will need higher equity - or lending will be restricted to a % of the value of your property.

This is why it is so important to act quickly to find the right solution before the problem escalates.

If you are unsure of the best way to avoid repossession or do not know whether repossession rescue finance is your best option, then contact the Revolution team on 0330 304 3040 and we will walk through the situation with you.

It's common to have other debts as well as falling into arrears with your mortgage. For most people, mortgage payments are the last thing you wish to default on, and so you may have stopped paying other bills beforehand to be able to keep up with your mortgage for as long as possible.

Very often, applicants will need to borrow money to clear other debts, as well as to avoid repossession.

This will, of course, be reflected in your credit report, which will show any late payments, defaults or financial difficulties - and the more issues shown, the more difficult it is to secure new financing.

Most lenders will want to see evidence that they are lending responsibly, and that you will be able to keep up with the repayments once the other debts have been cleared.

Assessing the Reason for Financial Difficulties

The reason you have fallen behind in your mortgage payments can make a big difference.

In the current economic climate, many people are reliant on government support and furlough schemes, and with mass-redundancies predicted some lenders could offer payment holidays, more flexible finance, and emergency support.

Suppose you have experienced an emergency that has caused the financial strain. In that case, some mortgage providers may be able to help, and will not proceed with a repossession order if you have been proactive in contacting them to explain what has happened.

Where circumstances could not have been foreseen, or a significant life event has occurred which has impacted your income and caused you to default, the most important thing is to get in contact with your mortgage lender.

Examples include redundancy, illness and injury - in which case a lender might offer support until you have recovered or found a new job.

Should there be no extenuating circumstances and you have mismanaged your budget it is less likely that a mortgage lender will be able to offer much flexibility.

Keeping up with Repossession Finance Repayments

Lenders will need to know that you can afford to keep up with the repayments before offering repossession rescue finance.

Income and affordability are essential criteria. If you can meet the repayments, a lender is likely to be able to consolidate all of your outstanding debts into one mortgage, or a second mortgage.

In some cases, you can also apply for a longer mortgage term to reduce the monthly payments and keep them comfortably within your budget.

Mortgage lenders will consider:

• The circumstances that led to the defaults and whether your income has now stabilised.
• Whether you are likely to be able to manage the repayments in the long-term, or whether similar difficulties are likely to arise in the future.
• If you have a stable, reliable income and a permanent job role.

Reliable income is key; although different lenders will use different calculations. For example, some will only accept salaried income as part of the income calculations, whereas others will include all bonuses, commissions and dividends.

Affordability is usually calculated as a multiple of your income - so typically the maximum offer will be up to 4-4.5 times your annual wage. Some lenders can offer more, even as high as 5-6 times your salary.

If you need repossession rescue finance and would like to identify the best lenders to apply to, contact Revolution Finance Brokers today on 0330 304 3040.

Properties Eligible for Repossession Rescue Finance

Refinancing your home to avoid repossession will involve a valuation - this helps the lender see what the property is worth and therefore calculate what they can lend against it.

Every lender will have a different policy, but traditional brick-built homes are usually the easiest property type to lend against.

Unusual properties, such as those with a thatched roof or timber frame, and those in need of repair, can be more difficult to lend against.

As a repossession rescue expert, the Revolution team is on hand to provide help with emergency finances in any situation. If you have a non-standard property or a home in need or renovation, contact the team, and we will work through the best options.

How Can I Avoid My Home Being Repossessed?

There are three primary ways to protect your home and prevent repossession from going ahead:

1. Contact your lender and see if negotiation is possible.
2. Sell your property and use the proceeds to repay the debt.
3. Seek repossession rescue financing.