Mortgage Arrears & House Repossession: A Complete Resource for Property Owners

If you are in mortgage arrears and facing a potential repossession it is a serious situation to be in.

Thankfully, repossession isn't something that happens overnight. The repossession process can take many months and during that period you'll have time to do something positive about it.

Article updated: August 2026

In this article, we'll look at what being in mortgage arrears means and how long a property repossession process takes.

Depending on your current possession, if you have missed one mortgage payment or you have missed many and now received a possession order, each stage has a specific process and timeline to consider.

At the start of this article we consider the first stage which is your first missed mortgage payments. We then look at what happens throughout a repossession to help you understand each step.

Important Disclaimer

The information provided in this article is for general informational purposes only and is not intended to be legal advice. While we strive to ensure the accuracy and completeness of the content, laws and regulations may have changed since publication. Consult a qualified legal professional for advice tailored to your specific circumstances. We are not responsible for any actions taken based on the information contained in this article.

This content was last updated: 1 August 2026.

Blocks falling onto a toy house are blocked by a hand. Represents stopping a repossession.

Step 1 - Mortgage Arrears Start

Technically a mortgage goes into arrears when you miss a payment. But some lenders offer an unofficial grace period before they'll even contact you about it. Depending on what date in the month your payment usually goes out, you may not receive a letter until the following calendar month.

If a property owner continues to fail to keep up with mortgage payments and does not engage or speak with the mortgage lender, eventually the lender may seek possession of the property through the courts to sell it and repay the loan.

The law is different across the UK and we will primarily write this article for property owners in England and Wales. This additional government article maybe helpful for you if you are potentially facing repossession in Scotland.

The law is also different for buy-to-let mortgages, as these are not regulated in the same way as homeowner mortgages.

If you are in this situation, you are not alone. UK Finance's Q1 2026 figures recorded 79,110 homeowner mortgages and 8,960 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance. During the same quarter, 1,250 homeowner mortgaged properties and 810 buy-to-let mortgaged properties were taken into possession.

So hopefully you can see, out of all the properties with mortgage arrears, most lenders don't want to repossess if they don't have to and will only use repossession as a last resort.

The Mortgage Charter sets out support commitments from participating lenders for regulated residential mortgage borrowers. One commitment is that, except in exceptional circumstances, a borrower will not be forced to leave their home without consent in less than a year from the first missed payment.

The Charter does not apply to buy-to-let mortgages. Its one-year commitment should therefore not be treated as a minimum timeline for a buy-to-let repossession, or for a residential mortgage with a lender that has not signed the Charter.

There is some additional protection for tenants in this scenario depending on what part of the UK the property is in. In England for example tenants can check the Citizens Advice guidance to see if they have a right to stay if a landlord falls in to mortgage arrears and the property is repossessed.

What Mortgage Lenders Do First

Mortgage lenders can't just knock on your door and throw you out. For mortgages within its scope, the lender must first follow the mortgage arrears protocol. The protocol covers the steps and information expected before a possession claim starts. It does not apply to buy-to-let mortgages.

The lender has a duty to follow certain procedures before they take you to court. If these duties have not been met, then the court may postpone its decision to issue the Order for Possession.

These duties include:

  • Treating repossession as a last resort and properly considering any reasonable suggestion for paying down the arrears
  • If they reject any suggestion that the borrower makes for repayment then they need to inform the borrower why the suggestion was rejected, in writing, within 10 days
  • Communicating with you in a way that is easy to understand

Steps You Can Take To Stop Arrears Growing

One approach you might consider, once you realise that you can't make a payment, is to contact your lender BEFORE they contact you.

Pre-empting the process and contacting your lender can often help as lenders tend to see those who approach them as being more responsible and more committed to settling their arrears than those that do not.

If you do this, however, you'll still need a plan of action.

Creating a Budget

Preparing a budget at the earliest possible moment is a good thing to do, for two reasons:

Firstly, knowing exactly what you can and cannot afford gives you a fighting chance of getting things under control.

Secondly, a budget can show your lender that you are serious about putting the situation right and have the facts and figures to hand that will help you achieve this end. You can use a budgeting tool to do this.

When you do your budget you will need to look at areas where you can either reduce your spending or increase your income.

It is also worth checking whether or not you have mortgage payment protection insurance that could help with your payments. It sounds obvious but if you did find that you were struggling with repayments only to find out that you were actually insured for that eventuality, you wouldn't be the first.

Try to Make Payments

If you can make a payment or part payment immediately, that may help reduce the arrears. You can also suggest a repayment plan to your lender for settling the arrears.

There are also other steps that may help. The protocol requires a lender to consider relevant support, repayment and sale proposals before starting a possession claim.

Free advice and support may include:

If you live in England or Wales, a debt adviser can apply on your behalf for the Breathing Space scheme if it is suitable and you are eligible. Standard protection lasts for up to 60 days. A separate mental health crisis breathing space can last for the period of qualifying crisis treatment plus 30 days.

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Step 2 - Court Process

If your arrears progress and you haven't managed to create a repayment plan with your lender, then the next stage may start, which is, a court process to gain a possession order.

A lender can only repossess your property if the court grants permission, as the government's repossession guidance sets out.

Understanding Possession Orders

The court can make several different orders. Three that directly affect whether and when you can remain in the home are explained below.

Being in receipt of a possession order, in and of itself does not mean that you are about to be thrown out of your home tomorrow or that your house is about to be taken from you.

It means that a process has started, at the end of which and in the worst-case scenario, your home could be repossessed.

1. An outright possession order

An Outright Possession Order means that the lender will have a legal right to take possession of the property after a set period of time; normally, 28 days.

Without any changes, this means you will have to leave the house within this timeframe or face an eviction notice.

However, extensions may be granted by the court on exceptional circumstances.

In this timeframe, you are still in a position to negotiate with your lender regarding repayments of your arrears, which, if accepted, will mean you can continue to live in your property.

But after the time has lapsed and if you have neither renegotiated your repayments nor left the property, then your lender can then apply to the courts for an eviction notice, meaning that you will be removed from the house by bailiffs.

2. A suspended possession order

Suspended Possessions Orders are quite common. What this means is that you can stay in your home, as long as you meet certain requirements. For example, if you can agree on a repayment plan and start to pay off the arrears then, as long as you keep to this, you can stay in your home and your lender will not repossess.

You can also request a suspended possession order if you want to sell your home yourself and pay off your debt that way. You can ask the court for a reasonable period of time to allow you to do this. If you are considering a sale, take independent debt and legal advice before agreeing a route or timescale.

3. A time order

Time orders are less usual but are still worth knowing about. A Time Order is when the court changes the amount you pay on your mortgage for set period of time to help you get back to a good position. This can include changing the amount you pay, changing the interest rate and delaying the next time you have to make a payment.

It is important to note a time order is usually only made on specific types of loans, like a second mortgage.

Preparing for the Possession Hearing

When your lender applies to a court for an order to repossess this is known as applying for a possession order.

A possession order is not something that will have come out the blue. Your lender will normally inform you that, from their perspective, an arrangement to recoup mortgage arrears from you has failed and that they will be seeking an order from a county court.

And being a court order, you have the right to be informed that the case is being taken to court, be told of the date and be invited to attend the hearing to contest the order, if you wish to do so.

If this has happened already, act immediately and take legal advice before the hearing. Paying the arrears, making a part payment or agreeing a plan with the lender may still affect what happens next, but the outcome depends on the stage reached and the court's orders.

This could move the process back a stage or, depending on the circumstances, halt it. Another option may be to sell your home. If you can show that reasonable steps have been or will be taken to market it at an appropriate price, the protocol says the lender must consider postponing the start of a possession claim for a realistic sale period.

This option could be attractive, as, by selling your house, you may get a better price than you will if the house is repossessed and it is left to the lender to sell it quickly on the open market with an estate agent or in an auction.

What Happens When Your Mortgage Lender Takes You to Court?

If your lender starts a possession action then you will receive a 'Claim For Possession' of the property from the court. This document will give you the details of the case against you and the date of the forthcoming hearing.

If the lender's case is successful in court then you will be issued with a 'Possession Order'. This order will either give you a list of conditions you must keep in order to stay in the property or it will be an order to vacate the property in a certain period of time.

Being taken to court does not mean your lender will automatically be granted outright possession. Several other outcomes are possible.

You'll be given the opportunity to argue why your home does not need to be repossessed and suggest solutions such as a repayment plan.

Take legal advice on what may work for you. If you are in England or Wales and eligible, Civil Legal Advice can help with debt where your home is at risk. The Housing Loss Prevention Advice Service is available to anyone facing possession proceedings, regardless of their financial circumstances, and can provide free advice and representation at court.

Other possible outcomes could include being ordered to pay the money you owe but without a repossession. You might be ordered to pay only part of what you owe or be given more time to pay.

It also might be possible to request an adjournment to a later date, to give you more time to come up with a solution, if you have legitimate reasons that an adjournment can help improve the position for all parties.

If you believe your lender has treated you unfairly, complain to the lender first. If you are unhappy with its response, or it has not responded within eight weeks, you may be able to take the complaint to the Financial Ombudsman Service. A genuine complaint about a potential possession claim is something the lender must consider when deciding whether to postpone starting proceedings, but the Ombudsman does not replace the court or automatically cause a possession case to be dismissed.

If Possession is Granted to Your Lender

If your lender has successfully obtained a possession order it doesn't mean you will be evicted immediately. A possession Order and an eviction Order (more correctly called a Warrant of Possession) are different.

An outright possession order states the date by which you must leave. If you do not leave, the lender can ask the court for a warrant of possession so that county court bailiffs can evict you. The government's repossession-order guidance explains the different orders and what may follow.

Lenders may well hold off on executing the possession order and the eviction if they think another arrangement is possible.

For example, if you come to a repayment arrangement then it may be possible to go back to court to get the original possession order changed or cancelled.

Stage 3 - Understanding Eviction and Bailiffs

If you do not leave by the date in an outright possession order, the lender can apply to the court for a warrant of possession. A warrant authorises a county court bailiff to evict the occupants and hand possession to the lender.

You will receive a formal Notice of Eviction, known as form N54 (specimen from the Justice website). It gives the date and time of the eviction, explains what will happen and tells you how to apply to the court if you want the warrant suspended. Act immediately if you need advice or want to make an application.

What bailiffs can do

A possession warrant gives the authorised bailiff or High Court enforcement officer authority to take possession of the property and take steps needed to prevent re-entry. The eviction notice gives the appointment date and explains how to apply to the court if you want the warrant suspended. Seek urgent legal advice rather than assuming the bailiff can change the court's order.

What happens to your personal property

The N54 notice tells occupants to leave with their belongings before the eviction appointment. If belongings remain, time to remove them is only allowed if the lender's representative agrees. Contact the lender or its representative before the appointment and ask for any arrangements to be confirmed in writing.

Emergency accommodation options

Contact your local council before the eviction if you may become homeless. In England, the help available depends on factors including whether you are eligible for assistance, homeless or threatened with homelessness, and in priority need. A council may provide advice, help to find accommodation or, depending on your circumstances, emergency housing. See the government's homelessness guidance for England. In Wales, use the Welsh Government's homelessness support service to contact your local authority.

Conclusion

The formal stages mean repossession does not normally happen immediately, but the timescale depends on the mortgage, lender and circumstances. For regulated residential borrowers whose lender has signed the Mortgage Charter, the Charter says they will not normally be forced to leave without consent in less than a year from their first missed payment. That commitment does not apply to buy-to-let mortgages.

But please do not delay in taking action or rely on the potential timeframe as every situation is unique.

The process usually includes formal notice and court stages, but seek help immediately rather than relying on a particular timeline. Here are the key points to remember:

  1. Early Action is Critical
    • The moment you realise you might miss a payment, contact your lender
    • The earlier you act, the more options you have
    • Lenders view proactive communication positively
  2. You Have More Rights Than You Might Think
    • Lenders must follow strict protocols
    • The courts are impartial and will consider your circumstances
    • Various types of orders exist to suit different situations
  3. Help is Available
    • Free professional advice is readily accessible
    • Government support schemes exist
    • Legal aid might be available
    • Your local council can assess what housing duties and support apply to your circumstances
  4. Selling Your Property Remains an Option
    • You'll likely get a better price than through repossession
    • Quick sale options are available
    • The courts may give you time to complete a sale

Remember: It is NEVER too late to pay off your arrears, make a part payment, or come to some arrangement with your lender. Even if you have received a possession order, options remain available. The key is to stay engaged with the process and seek appropriate support at every stage.

Don't face this alone. Free support services exist, professional advice can help, and many people have successfully navigated this situation before. The aim is to work toward the best possible outcome for your circumstances, including reducing the chance of repossession where possible.

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