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Bridging Loan To Stop Repossession

Understanding how to prevent the unfortunate event of home foreclosure is crucial to safeguarding your property and avoiding a catastrophic situation. Shockingly, research indicates that a significant number of homeowners lack knowledge on effective strategies to evade repossession.

While most banks and lenders strive to steer clear of foreclosures, the ultimate outcome largely hinges on the actions or inaction taken by the debtors themselves.

How a repossession happens

Foreclosure happens when mortgage lenders seek legal authority from the court system to confiscate your home as a result of non-payment or failing to properly comply with mortgage conditions. When you sign a mortgage agreement, you give the lender a stake in your house (represented as an interest percentage). Although their share diminishes as you diligently repay borrowed funds, it's important not to overlook their prerogative to pursue repossession if payments are neglected.

This implies that even if you've successfully paid off 85% or 95% of your mortgage balance, there remains a possibility of repossession should timely payment obligations be disregarded. Therefore, it is vital to take preventative action as soon as possible.


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The repossession process

Banks and lenders rarely seek repossession orders without first considering all other viable options to resolve the issue. Where a bank chooses to pursue the repossession of a property, the process generally takes place as follows:

How to avoid repossession

Understanding how to stop the repossession of your home through constructive dialogue is essential for all homeowners. Nobody plans to fall into arrears or deliberately fail to meet their repayment obligations; hard times and financial shortfalls often cannot be predicted.

There are various options available to stop a repossession from becoming necessary, which for most struggling homeowners include the following:

Depending on the circumstances of your financial shortfall, your mortgage insurance policy can cover your repayments to avoid home repossession entirely. For more information on short-term borrowing to cover urgent expenses and outgoings like these, book your obligation-free consultation with the team at UK Bridging Loans today.

How it works

get-in-touch
Get in touch

Clients approach UK Bridging Loans either directly or via introducers. Basic questions by way of a “fact-finding” process are used by UK Bridging Loans to determine if the lending requirements are a possibility.

home-valuation
Fast approval

An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.

fast-approval
Formal offer

A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.

representative-visit
Representative visit

Each client is visited at the security address for the signature of the remaining loan paperwork, including a CH1 land registry charging order. We will also collect any additional pre-requested documentation.

underwriting
Dedicated underwriting

The signed documentation was immediately sent to our underwriters. Our model is based on very quick completions, as each deal is funded using all of our own money. On rare occasions, we may request additional information.

access-funds
Payment of funds

Average completion from initial acceptance to pay-out is usually just a few days. We rarely require valuations or additional legal representation. The land registry charge will be removed once the bridging loan is repaid.

Who can use bridging finance?

people

Age

The applicant could be too old to obtain a standard high-street mortgage, as most mortgage lenders now prevent borrowing beyond what is deemed “normal retirement age”.

property-condition

Property conditions

The property may be in a condition where it is not suitable for mortgage financing, and as such, a bridging loan could be used to complete the purchase and any required work prior to refinancing.

credit

Credit

The applicant may have had some adverse credit, however minor, which was previously acceptable to lenders but now no longer fits the high street lending criteria.

income

Income

The applicant may have difficulty proving the income requirements needed for more regular financing. This may be due to poor self-employment records, a break from work, a reduction in self-employed workloads, or overtime.

USP's

  • cloud Superfast completion, often within days
  • cloud Land, with or without planning
  • cloud 2nd charge (consent is not always required)
  • cloud Quick auction finance
  • cloud 3rd charge (consent is not always required)
  • cloud Adverse credit is considered
  • cloud 2nd charge behind the bridging lender
  • cloud 2nd charge behind the equity release lender
  • cloud Up to age 85
  • cloud Pure equity-based lending
  • cloud Residential and commercial
  • cloud Valuations are not always required
  • cloud Loans from £25,500
  • cloud A free legal option
  • cloud No monthly payments

Frequently asked questions

Can you stop a house repossession?
Yes, there are a number of things you can do to try to stop your house from being repossessed. These include:

Can I sell my house if it is being repossessed?
In some cases, you may be able to sell your house before it is repossessed. This is known as a pre-possession sale. However, you will need to find a buyer who is willing to pay the market value of your home, even though you are in financial difficulty. You may also need to pay off your mortgage in full in order to sell your home.

How many mortgage payments were missed before repossession?
There is no set number of mortgage payments that you can miss before your lender can start repossession proceedings. However, most lenders will wait until you have missed a significant number of payments before they take action. This is because they want to give you the opportunity to resolve the issue before it gets to the point of repossession.

How quickly can a bank repossess a house?
The process of repossessing a house can take several months. However, it can happen more quickly if your lender decides to apply for an immediate possession order. This order will allow them to take possession of your home without having to go to court.

Do you still owe money if your house is repossessed?
Yes, you will still owe money on your mortgage even if your house is repossessed. The lender will sell your house to recoup as much of the money as possible, but you will still be liable for any remaining balance. This is called a deficiency.

Can you get your house back after repossession?
In some cases, you may be able to buy your house back from the lender after it has been repossessed. This is called redemption. However, you will need to be able to pay the lender the full amount of the outstanding mortgage debt, plus any additional costs that have been incurred. It is important to seek legal advice if you are facing the possibility of house repossession. A solicitor can help you understand your rights and options and can represent you in court if necessary.

Bridging loan uses

Contact Details

pinBusiness Address: Office Block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX

callTelephone:  0116 366 6338

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