What happens when a lender sells your home
Your mortgage lender has to repossess your home and evict you before they can sell it.
This means they have to:
ask the court for a possession order
get court bailiffs to evict you
There will be a repossession hearing at your local court. You should go to your hearing. It might be possible to stop your eviction if you can pay off your mortgage arrears over time.
More on:
The breathing space scheme could help if you miss mortgage payments.
It can stop payment demands while you get free debt advice.
It could delay mortgage repossession and eviction.
Mortgage payments after a possession order
A court can make a suspended possession order if you can keep to a repayment plan. For example, by paying £50 a month on top of your normal mortgage payment.
A court normally makes an outright order if you cannot afford your mortgage payments. This sets a date for you to leave your home. Your lender can ask bailiffs to evict you if you do not leave by this date.
You do not have to make any more mortgage payments if the court makes an outright possession order.
The amount you owe can still go up until your home is sold. This is because interest, legal fees and other charges can be added to your mortgage debt.
More on possession orders.
Selling your home yourself
If you cannot afford your mortgage, you could sell your home yourself.
Your lender must consider delaying court action if you take steps to sell your home.
You might get a better price for your home if you sell it yourself. You will get to keep any money left after paying off the mortgage and any other debts secured on your home.
You need your lender's permission to sell if the sale price is less than what you need to pay off the mortgage.
More on selling your home to avoid repossession.
If you are evicted
Most mortgage lenders want 'vacant possession' of the property so they can sell it.
This means they will ask court bailiffs to evict you on a date set by the court.
You will not be able to stay in your home after this date.
More on eviction by bailiffs after a mortgage repossession.
Repairs and maintenance after eviction
Your lender must take care of the property until it is sold.
They must deal with emergency or essential repairs. They may also do basic maintenance.
They can charge for this. The charges are usually added to what you owe.
How lenders sell repossessed properties
Your lender must sell your home for the best price they can reasonably get.
They might:
advertise your home through an estate agent
sell your home at an auction for a quicker sale
When the property is sold
Your lender uses the money from the sale to repay what you owe them.
This includes the:
outstanding mortgage debt
lender's legal costs
estate agent or auction house fees
bills for repairs and maintenance
Any other debts secured on your home can also be paid off once the main lender is paid back.
Any money left after the debts are cleared is paid to you.
If the sale does not cover your debt
You will still owe money to your lender or mortgage indemnity insurer.
This is sometimes called a mortgage shortfall.
How to deal with a mortgage shortfall.
Last updated: 27 January 2026
