What to do if your mortgage lender starts court action
When you get letters from the court
get advice if you can
work out a plan to repay the arrears if you’re able to
decide what to ask the court if you can't afford to stay in your home
check the court documents and return the defence form
Get debt advice
If you haven't done so already, now is the time to get debt advice.
A debt adviser can help you draw up a financial statement and make a repayment plan.
Make a repayment plan
The judge will usually let you stay in your home if you can show that you can pay both:
your monthly mortgage payment
a set amount each month until you clear the arrears
The plan needs to show that you have enough income left over every month to pay a regular amount towards the arrears until they are cleared.
Drawing up a financial statement can help you do this.
If you come up with a reasonable repayment proposal, put it in writing to your lender before the court hearing. They may still want to go to court to make sure you stick to it, but they must treat you fairly.
Make a formal complaint if your lender won't talk to you or rejects reasonable proposals to deal with the arrears.
You can complain to the Financial Ombudsman Service (FOS) if you're unhappy with the lender's response. You should ask the court to delay the hearing while they wait for the FOS to consider the complaint.
Decide what to do if your mortgage is unaffordable
It may not be possible to keep your home in the longer term if you:
can't afford the monthly repayments
won't be able to clear the arrears by the end of the mortgage term
Some homeowners choose to sell their homes in this situation rather than wait for repossession and eviction.
If you accept an offer on your home, you could ask for time at the hearing to allow the sale to go through. You'll need to show the court evidence of the sale.
Check the court documents and return the defence form
You will get several letters and forms from the court. Keep them together in a file.
|Letters received||What this means|
|Claim and defence forms||Your lender has applied for a possession order.|
|Notice of review||The court has scheduled a review date for your case.|
|Notice of possession hearing||The court has arranged a hearing for you to attend.|
The claim form
The claim form and particulars contain the details about your mortgage and the missed payments. Read through this information carefully. Make a note if there's anything you disagree with.
The defence form
Use the defence form to tell the judge:
about your financial circumstances
how you can repay the arrears
if you disagree with anything the lender has said
You should also say if the lender hasn’t followed the steps they should take before starting court action.
Mention if you’ve been struggling because of coronavirus. For example if you’ve lost your job or your income has reduced.
You should return it to the court within 14 days.
If you can't complete the form or get help with it, court guidance says you could send a short statement to the court instead.
Notice of review
A notice of review tells you the date your case will be reviewed by a judge.
You don’t need to attend in person but you can get legal advice from a duty adviser on the day.
The notice of review will tell you how to contact them.
Notice of possession hearing
A hearing will usually take place at your local county court 4 weeks after the review.
You should always attend if you can.
Let the court know in advance if you can't, for example, if you’re self isolating. You may be able to join the hearing by phone or video.
You can get legal help from a duty adviser on the day of the hearing. The notice of possession will tell you how to do this.
Last updated: 28 May 2021