In a recent blog, we briefly touched upon how housing benefit can help in paying rent if you’re or about to be homeless. As mentioned earlier, to be eligible for housing benefit: you must live in the accommodation you’re claiming benefit on; must have low income or claiming benefits; and your savings must be less than a specific level. If you’re eligible, all or part of your rent will be paid. It’s important that you start looking for various accommodation options available to people facing eviction, so that you’ve plenty of time to get a benefit.
There are two ways of claiming housing benefit: take a housing benefit claim form from your local council, or request for it while you make a new claim for a specific benefit. You can obtain this claim form from the website of your local council or gov.uk and must return the completed form within a month. The claiming benefits with which you could include a housing benefit claim are: income support,
You went through a torrid time while your house was repossessed, but since then your financial condition has improved significantly and now, you’re thinking to take out a new mortgage. It is natural to be uncertain about your chances to convince lenders as they would be highly sceptical that you’ll pay your mortgage this time. The key here is to know when & where to apply so that your credit score doesn’t get impacted negatively. It is prudent to take professional help while applying so that you cover all necessary points.
The most critical determinant and invariably the question most lenders begin with is, “when was your house repossessed?”. If the eviction happened less than three years ago, then the probability of approval is quite low. Even if a lender approves the loan, the deposit required would be extremely high so that the lender could minimize the associated risk. In case the eviction due to mortgage arrears happened more than three years ago, the probability for approval improves and high percentage of loan-to-value (LTV) could be considered by many lenders.
If an outright possession order has already been made and the warrant for possession is about to be executed against your home, then you should start looking for options for alternative accommodation without any delay. As pointed out in earlier blogs, even at this point there are many options available to stop repossession of your house, but you should embrace the fact that eviction is imminent. There are short-term as well as long-term accommodation options possible for people facing eviction, and it is important to seek advice in time to get required help.
If you’re planning to move to a rented place, then it’s possible to claim housing benefit that will pay all or part of your rent. The amount you’ll get will depend on variables such as your income, amount of rent, benefits you’re already claiming, etc. To be eligible for housing benefit: you must live in the accommodation you’re claiming benefit on; must have low income or claiming benefits; and your savings must be less than a specific level.
Many people who have lost their house due to mortgage arrears, ask the same question. Once a possession order is made and the warrant for possession is executed, there is not much hope left for the owner; however, there are three precise conditions when an executed warrant for possession can be set aside. These three conditions that could allow you take back your house are: the order on which warrant for possession was issued is itself set aside; the warrant in question has been obtained by fraud; or if the court finds that there is an abuse of process or oppression in its execution.
Let’s understand these aforementioned conditions with examples. Consider that a lender named L has started a possession claim against a property mortgaged to a borrower B. Taking into account various evidences presented, the court makes a possession order and L consequently moves to the High Court for execution. In the meantime, B appeals the possession order and had a pending application for another related order.
The thought of losing the dream home can be fearful and depressing for the owner, who has invested his hard-earned money. However, there are circumstances and situations during which the family has to face financial crisis and the owner becomes unable to pay the mortgage within stipulated time. The lending organization takes legal actions to repossess such property and evict the occupants from their home. Homeowners facing repossession either are in heavy debt or have huge mortgage arrears on their property.
However, there are several methodologies to stop home repossession and regain the ownership of the property:
- Home Remortgaging – People facing the fear of home repossession can opt to remortgage their home loan, if there is still equity left in the said property valuation. The process allows the owner to get rid of the arrears while getting a new home loan at lowest interest rates. With a lower monthly payment, it becomes possible for the owner to pay off the loan in time.
In modern days, majority of the homeowners have to face issues in their mortgage payment. With the rising interest rates, most of the families have to strive hard to make the loan payment on time. At times, huge mortgage arrears build up due to reasons like, accident or sickness, death of a spouse, redundancy or unemployment, or sudden hikes in mortgage interest rates. A few missed payments on the mortgage can often lead to property repossession and in some of the rarest cases the occupants are even evicted for their negligence.
Individuals who are being suffered by mortgage arrears need to take requisite measures to arrive at a satisfactory solution. It is advisable to determine the root cause of such financial dues and what can be done to regain the financial position back again. When the person is dealing with a huge home loan, he can either request the bank for lower payment rates or make delayed payments at higher interest rates.
Different options to settle mortgage arrears:
When the lending organization refuses to make any settlement with the homeowner,
It cannot be stressed enough that selecting the right mortgage type is crucial in ensuring timely mortgage payments and avoiding arrears that may lead to house repossession. You may take a special mortgage deal that has a lower interest rate than the other deals you have come across, but once the duration of the deal ends, your lender may start to charge the standard variable rate which in most cases is appreciably higher than the interest rate on these special deals. This could impact your budget in a big way and may lead to arrears. Many people also ignore mortgage related fees when they search for an appropriate deal and end up paying significantly more than they could afford. Hence, it is always prudent to take professional help before taking out a new mortgage.
An independent mortgage broker, commonly referred as a mortgage adviser, can provide you extensive information about various mortgage products available in the market and as per your financial condition will suggest the most lucrative deals.