How to avoid repossession

Mr C. Morgan, Finchley

"Excellent service! I am clearing my mortgage arrears and feel alive again."

At Debt Trust Direct our priority is always to save your home. Your mortgage or rent should be your number one consideration with any unsecured debts paid later. Unfortunately that does not always happen and with aggressive collection agents the credit card and loan companies are often the first to get paid.

At Debt Trust Direct our job is to make sure that doesn’t happen and by re-structuring your budget (we specialise in reducing your monthly bills on insurance and utilities) we make sure your secured loans are paid. That means your home is protected (we will also stop your unsecured creditors from hassling you) and money is available to pay for food and other essentials.

We then explain this to the credit card and loan companies and agree a more affordable repayment schedule with them and hopefully freeze the interest on your debt.

The Council of Mortgage Lenders (CML) has predicted that 40,000 homes will be repossessed in 2011 but your property does not have to be one of them. In recent years the government has urged restraint from lenders and strengthened your position. At Debt Trust Direct we will protect your rights and will contact your mortgage lender on your behalf. We can stop legal action and buy you some time to breath and get back on your feet.

Even if a repossession order has been received there could still be time to turn the situation around and save your home. Please contact us on 0800 084 2885 today or follow the tips below which should help if you are behind on your mortgage:

• Do not ignore letters and calls. On 22nd October 2008 the government amending the pre-action protocol which makes repossession the last resort and means lenders are now more sympathetic to your situation.
• Prioritise your debt. Concentrate on paying your mortgage and consider offering unsecured creditors token payments. Please see our ‘other options’ page for further details on how to do this.
• Analyze your budget and try to make savings. Could you switch providers or cancel your satellite television?
• Can you increase your income? We can check that your are receiving the correct benefits and tax credits but there could also be overtime available at work or maybe you could rent a room...with the permission of your lender.
• Consider selling your house and buying a smaller property or renting. Repossession can prove expensive as you are hit with legal fees and the property is often sold at auction so selling now could make sense. If you do choose to put you property on the market be wary of companies offering to buy your house at a reduced price for cash. These ‘sell & rent’ schemes could mean you stay in your home but also that you get a poor deal and are left with nothing.

With interest rates set to rise, if you are struggling you need to act before it is too late. Why not try our free 30 second test and see if we can help.