You are here: Home - Mortgages - Remortgage - News -

Home repossessions suspended for three months

Written by: Owain Thomas
Mortgage lenders will not repossess residential and buy-to-let properties from today for the next three months for borrowers affected by the coronavirus.

They are also suspending all repossession orders currently active, however, formal demand notices telling borrowers how much they owe will continue to be issued but not acted upon for 90 days.

A joint statement from trade bodies UK Finance and the Building Societies Association (BSA) set out how the operation to pause possessions will work:

  • Lenders will suspend all possession orders
  • Lenders will not commence any court action, including putting the case to court or instructing on matters
  • Lenders are able to issue a formal demand, so that the customer is aware of the money they owe and are informed that the case will eventually go to possession proceedings
  • This letter is valid for eight weeks, but firms will agree not to take any further steps until the end of the 90-day period
  • There are exceptions for empty properties or where the customer wants the possession to go ahead
  • In buy-to-let, lenders would still use a Receiver of Rent where appropriate but would not move to possession if the tenant could not pay

Worrying time

The easing of possessions is in addition to the flexibility announced for affected residential borrowers and buy-to-let landlords outlined over the previous two days.

This includes up to three months mortgage payment holiday and other flexibility from lenders.

Robin Fieth, chief executive of the Building Societies Association (BSA) said: “Building societies are acutely aware that this is a worrying time for those with a mortgage or who pay rent as both typically account for a significant proportion of household expenditure.

“Now is a time for lenders to be flexible. The steps being taken by the industry today will offer some breathing space for those affected by the Covid-19 situation whether directly or indirectly.

“The best first step advice remains to get in touch with your lender or landlord.”

UK Finance CEO, Stephen Jones, added: “The industry wants to reassure customers that they will not have their homes repossessed at this difficult time and therefore, these measures will start from 19 March.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center