If
you fall badly behind with your mortgage
repayments, your lender can repossess your home and sell it.
Obviously, your first concern will be finding somewhere else
to live.
But the nightmare won't end there.
Once you get back on your feet, it may be several years before
you can persuade a mainstream mortgage
lender to give you another loan.
In the meantime, you'll probably be able to borrow from one
that specialises in bad
credit mortgages, but this will cost you considerably
more.
that's still not the end of the story though.
The rules on outstanding
mortgage debts
If your lender sold your home for less than you owed on your
mortgage plus interest and sale fees you can expect it
to come after you for the shortfall.
According to the law in England,
Wales and Northern Ireland,
lenders have up to 12 years to start
chasing you for the outstanding amount.
But those that are members of trade body The Council of Mortgage
Lenders adhere to a voluntary agreement
to act within six years.
In Scotland, lenders must usually
act within five years.
But no matter where you live in the UK, if it's thought fraud
was involved, there's no time limit
for beginning recovery action.
And, whether your financial difficulties were
your own fault or not, once your former lender has begun the
chase to recover its money, there is no limit on how long
it can keep after you.
How to avoid repossession
that's why you should never bury your head in the sand if
you can no longer pay your mortgage.
Contact your lender right away to discuss your options.
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