This is a situation no one wants to be in – and no one plans on. You may have any number of reasons to purchase a house: maybe you want to live there while you establish your career. Maybe it meets your needs at the time. Maybe it is close to work, to school or to your family. Maybe you intended for this to be the place in which you grew old and welcomed the grandchildren for holidays and weekends.
There are any number of reasons why you bought your home – and an equal number of reasons why it is now under threat of repossession. Can you work with property buyers in the UK to prevent this process from proceeding to an unfortunate conclusion?
Repossession: An Unfortunate Reality for Many Homeowners
The Coronavirus Act (March 2020) helped protect homeowners from repossession during the chaotic days of the pandemic. We saw mortgage possession claims, warrants and repossessions decrease by 53%, 47% AND 57% respectively during this time period.
As we move on to the loathed phrase “the new normal,” however, protections have not continued. We are already experiencing dramatic increases in these actions. For example, repossessions jumped from just three in 2020 to 571 in 2021. As courts catch up on their administrative backlogs, we can only expect these numbers to rise.
Behind each statistic is a person, a homeowner, a family.
Behind each statistic is someone who:
- Lost their job
- Must figure out a way to pay for care
- Has wages that cannot keep up with inflation
- Has had a major life change
- Is dealing with an illness or injury
- Is facing repossession
- Must relocate for work, family etc.
- Has an inherited property that has unrealistic maintenance needs
No one wants to be here – but you can find a way through so you can move on towards your goals on more sure footing.
Avoiding Repossession with Property Buyers UK
It is important to remember that, legally, repossession is the last resort when people fall into arrears on their mortgage. They are required to work with you to make reasonable arrangements to repay arrears and remain in good standing and explore repayment options. You may be able to:
- Lengthen the term of your mortgage to reduce payment
- Change the type of mortgage you have
- Receive a payment holiday (i.e. a break from paying)
- Reduce your payment amount
- Add the arrears to your total mortgage amount
Another option open to you is selling your home. This may be your last resort, as well, but if you are too far in arrears, cannot afford even a reduced payment or if you simply want out of a very difficult, stressful situation, it may be one well worth considering.
By selling, you get control back, and the funds can be used to stabilise your financial situation. Your lender is also required to work with you around a sale in terms of providing reasonable time for it to go through. Now “reasonable” may seem unreasonable if the market is cool or if your house is not in a condition ready for buyers.
This is where property buyers in the UK come in. You may have heard them referred to as “We Buy Any House” companies. They are cash buyers, funded by investors, and they have the purchasing power to complete transactions quickly and seamlessly.
Within 24 hours, you will have an initial offer, also called an “offer in principle.” If this is acceptable to you, you can proceed. From there, the property buyer will instruct valuations experts and surveyors. Upon the conclusion of these aspects, they will provide a formal offer. Does it change? It may. If the inspections revealed any significant issues (e.g. structural damage, water damage, etc.), they may offer a reduced price.
Property buyers allow you to sell your home quickly and in as-is condition. This means you don’t have to take on the expense – and hassle – of repairs, renovations, updates, staging and more. You also don’t have to engage an estate agent and solicitor, so you can escape those fees as well.
Best of all, you will complete your sale within about 21-28 days, receiving cash directly in your bank account. This certainly qualifies as a “reasonable” amount of time as far as your lender is concerned to remain in your home, get your affairs in order and plan your next steps.
Property buyers UK can help you avoid the stressful process of repossession.