Missing a mortgage payment is serious — but repossession is never immediate and almost never unavoidable if you act quickly. Understanding the process gives you time to act.
Important disclaimer: Your home may be repossessed if you do not keep up repayments on your mortgage. This page provides general guidance — always get independent legal and mortgage advice for your specific situation.
The Mortgage Arrears Process — How It Works
| Stage | What happens | Your options |
|---|---|---|
| 1. Missed payment | Lender contacts you; missed payment recorded | Contact lender immediately |
| 2. Second/third missed payment | Arrears building; default notice likely | Seek free advice; engage with lender |
| 3. Pre-action protocol | Lender must follow FCA MCOB 13 and courts’ pre-action protocol | Respond to all communications |
| 4. Court claim | Lender issues possession claim at court | File a defence / N244 application |
| 5. Possession hearing | Court hears the case | Attend the hearing — always |
| 6. Possession order | Judge grants order (suspended or outright) | Suspended SPO = stay if you comply |
| 7. Enforcement | If you breach SPO — bailiff execution | Seek emergency legal help |
Lender Obligations Under MCOB 13
Before taking any court action, your mortgage lender must:
- Contact you promptly when arrears arise
- Treat you with forbearance and due consideration
- Allow you a reasonable time to seek debt advice
- Consider all available options, including: extending the mortgage term, changing to interest-only temporarily, payment deferral, or part-payment arrangement
- Not apply for court possession if you have a genuine arrangement to repay arrears
Key protection: If your lender takes possession proceedings without following the pre-action protocol, the court can and often will penalise them (e.g. with costs orders) and may give you more time to resolve the arrears.
What to Do If You Miss a Payment
Act immediately — do not wait.
- Call your lender’s arrears or financial hardship team — not the general number. Explain your circumstances.
- Gather evidence of the reason — redundancy letter, fit note, bank statements showing income drop
- Ask about payment holidays — many lenders offer short-term payment deferrals for qualifying circumstances
- Get free advice — National Debtline Mortgage Arrears helpline: 0808 808 4000; Citizens Advice; your local Shelter branch
Mortgage Support Options
| Option | What it does | Who it suits |
|---|---|---|
| Payment holiday | Pause or reduce payments temporarily | Short-term income disruption |
| Interest-only switch | Reduce monthly payment (capital not repaid) | Medium-term difficulty |
| Term extension | Lower monthly payment; pay more in total over time | Longer-term affordability issue |
| Part-payment arrangement | Pay what you can; arrears repaid gradually | Persistent but manageable shortfall |
| Mortgage Rescue (local authority) | Some councils help with arrears as a last resort | Extreme cases |
| Support for Mortgage Interest (SMI) | Government loan for interest payments (if on qualifying benefit) | Benefit claimants |
At the Court Hearing
Always attend the court hearing. If you fail to attend:
- The judge has no alternative but to grant a possession order
- You lose the opportunity to explain your circumstances and negotiate
At the hearing, you can:
- Request a suspended possession order — courts grant these routinely if you can show you can maintain future payments
- Ask for an adjournment if you need more time to sort finances
- Present evidence of a repayment arrangement already agreed with the lender
Related Articles
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- Credit Scores hub — impact of arrears on your file
- Getting a Mortgage with Bad Credit UK