Facing repossession: your options, including a quick sale

Falling behind on your mortgage is frightening, but repossession is not automatic, and lenders have to follow rules before they can go to court. The most important step is to get free, independent advice straight away; selling your home yourself is one option, but it only clears the problem if the sale price covers everything you owe on the mortgage.

This guide explains where to get help, what your lender must do, and how a sale compares with letting the lender repossess.

Where can you get free advice today?

These organisations give free, independent help with mortgage arrears, so you don’t need to pay for advice.

Shelter (England): housing advice, including a detailed guide to repossession.
Shelter Cymru (Wales) and Shelter Scotland.
Housing Rights (Northern Ireland): helps people who are behind on their mortgage. Helpline 028 9024 5640.
Citizens Advice: local offices across the UK.
MoneyHelper: free, government-backed money guidance.
StepChange and National Debtline: free debt advice charities.

If you’ve received written notice that you need to leave your home, GOV.UK explains that in England you can get free legal advice through the Housing Loss Prevention Advice Service, including representation on the day of your hearing.

If you have other debts too, our guide to financial difficulty explains how priority and secured debts work. Our sister sites IVA Helpline (England, Wales and Northern Ireland) and TrustDeeds.co.uk (Scotland) explain formal debt solutions. They are run by Simply Quote Comparison Ltd, the company behind this site, and are enquiry services, not independent advice. A debt adviser can also tell you whether a Breathing Space would help. In England and Wales, a standard breathing space lasts up to 60 days and pauses most enforcement action and creditor contact. It can cover mortgage arrears that existed when it started, but your ongoing mortgage payments must carry on. Only an FCA-authorised debt adviser or a local authority can start one.

If you receive certain benefits, you may also be able to get Support for Mortgage Interest. GOV.UK explains that it’s paid as a loan, which you repay with interest when you sell or transfer your home.

What must your lender do before going to court?

England and Wales. Lenders are expected to follow the Pre-Action Protocol for possession claims based on mortgage arrears. Among other things, the lender must:

give you information about your monthly payments and the amounts paid over the last 2 years, and details of the arrears
advise you to contact your council’s housing department, and refer you to independent debt advice where relevant
respond promptly to any payment proposal you make, and if it doesn’t agree, give reasons in writing within 10 business days
treat starting a possession claim as a last resort, not normally to be started unless all other reasonable attempts to resolve things have failed

The protocol doesn’t apply to buy-to-let mortgages.

Citizens Advice adds that lenders have to treat you fairly and consider any request to change the way you pay. Options you can ask about include adding the arrears to your monthly payments, extending the mortgage term, switching to interest-only for a period, or a payment holiday.

Scotland. Shelter Scotland explains that lenders must send you letters about your debt and where to get support, give you a chance to make repayments, and apply to court for a repossession order. It stresses that you can negotiate with your lender at any point.

Northern Ireland. Housing Rights can explain the process and talk to your lender with you.

How should you talk to your lender?

Citizens Advice’s advice is not to wait for your lender to contact you, but to talk to them as soon as possible. Tell them if you’re getting debt advice, as it shows you’re taking steps to sort things out. Keep a record of every call and letter.

Free · No obligation

Want to know what a cash buyer would offer?

Tell us about the property in 2 minutes. Vetted buyers, individuals and institutions, reply with offers.

Cash buyers usually offer less than full market value in return for speed and certainty. You are free to turn down any offer.

Is selling yourself better than letting the lender sell?

Often it can be. Shelter explains that selling your home yourself puts you in control of the sale and helps you plan your move. If the lender repossesses and sells, it might sell your home for less than it’s worth, and if that sale doesn’t cover what you owe, you have to pay back the difference.

You don’t have to choose between selling and fighting the claim. In England and Wales, the pre-action protocol says that if you’re taking reasonable steps to market the property, the lender must consider postponing court action to give you a realistic period to sell. Shelter also explains that some lenders offer an assisted voluntary sale, which may include help with selling fees or pausing court action, and that the court can make a suspended possession order that gives you time to sell.

Can a quick sale clear your arrears?

Only if the numbers work. Before you accept any offer, add up everything that has to be paid from the sale: the mortgage balance, the arrears, any other loans secured on the home, any early repayment charges and your legal costs.

If the offer covers all of that, a sale can clear the arrears and stop the repossession. If it doesn’t, Shelter explains that you’ll need your lender’s permission to sell and you’ll still owe the shortfall.

This is where honesty matters most. A quick sale to a cash buyer usually means accepting less than full market value in return for speed and certainty. Shelter warns that some companies make money by buying homes for less than they’re worth, and that selling cheaply might leave you unable to repay all your debts. It recommends getting your home properly valued first. Our guide to spotting rogue quick-sale companies explains what to watch for.

Once you’ve spoken to an adviser, if a quick sale sounds right, you can tell us about your property and, with your consent, we’ll pass it to vetted cash buyers on our panel. We don’t buy or value homes ourselves, and you’re under no obligation to accept any offer. Compare it with what an estate agent could achieve in the time you have.

A warning about sale and rent back

Some firms offer to buy your home and let you stay on as a tenant. This is called sale and rent back, and it is regulated by the Financial Conduct Authority. Only FCA-authorised firms can offer it. The FCA requires authorised firms’ adverts to warn that you are unlikely to get the market value of your home and, as a tenant, may only be able to stay for a limited period.

We don’t offer or arrange sale and rent back. If someone offers it to you, check the firm on the FCA’s Financial Services Register, read MoneyHelper’s guidance, and speak to a free adviser first. The FCA warns that if you deal with an unauthorised firm you won’t have access to the Financial Ombudsman Service or FSCS protection. Our guide to sale and rent back has more detail.

Common questions

Can I sell my house if I'm in mortgage arrears?

Usually, yes. The sale has to repay what you owe on the mortgage, including the arrears. If the price won't cover everything you owe, Shelter explains that you'll need your lender's permission to sell and you'll still owe the difference.

Will my lender wait if I'm trying to sell?

In England and Wales, the pre-action protocol says that if you can show you're taking reasonable steps to sell, such as marketing the property properly, the lender must consider postponing court action to give you a realistic time to sell. Some lenders also run assisted voluntary sale schemes.

What happens if my house sells for less than I owe?

The difference is called a shortfall, and you'll usually still have to repay it. Shelter explains this applies whether you sell or the lender sells after repossession. A debt adviser can help you plan for it.

Is it too late to do anything once court papers arrive?

No. In England, you can get free legal advice through the Housing Loss Prevention Advice Service once you receive written notice that you need to leave your home. Shelter explains that the court can make a suspended possession order that gives you time to sell. Get advice as early as you can.