Mortgage Arrears: How to Avoid Repossession (2026)

Data last checked on 23 October 2026.

Checked against MoneyHelper, the FCA Handbook, GOV.UK and one other official source. Edited by Steven Butler.

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If you are worried about your mortgage payments, contact your lender first. The sooner you act, the more options you have. A lender should treat a possession claim as a last resort and must not normally start one unless all other reasonable attempts to resolve the situation have failed.

Key points

✓Contact your lender as soon as you are worried about your payments.
✓A possession claim should be a last resort, and must not normally be started until all other reasonable attempts to resolve the situation have failed.
✓Your lender must consider whether to extend the term, change the type of mortgage, waive or defer capital or interest, or reduce the interest rate.
✓Support for Mortgage Interest is a loan: you repay it with interest when you sell or transfer ownership of your home.
✓Support for Mortgage Interest cannot pay off missed mortgage payments (arrears).

Act early, and talk to your lender

Contact your lender as soon as you are worried about your payments. You are likely to have more options before you miss a payment, and your lender will be keen to help and will talk through your options.

Under FCA rules your lender must:

Deal fairly with you if you have or may have payment difficulties
Make reasonable efforts to reach an agreement with you over the method of repaying any payment shortfall
Allow a reasonable time over which any payment shortfall should be repaid
Grant, unless it has good reason not to, a request to change the date on which the payment is due or the method by which payment is made, and give you a written explanation of its reasons if it refuses
Where appropriate, inform you that free and impartial money guidance and debt advice is available, and signpost or refer you to suitable sources
Not repossess the property unless all other reasonable attempts to resolve the position have failed

A mortgage is a priority debt. If you do not pay it you could risk losing your home through repossession, damage your credit score, pay extra fees or court costs, and find it harder to get credit or a mortgage in future. Our priority debts guide covers the other debts that come first. If you fall into arrears, MoneyHelper says your lender must, within 15 working days, tell you the total sum of the arrears, list the payments you have missed or partly paid, give the exact amount outstanding under your mortgage, and tell you the charges incurred because of the missed payments.

Missing a mortgage repayment puts you in mortgage arrears, and missed payments will damage your credit file. The Pre-Action Protocol covers arrears on first charge residential mortgages and home purchase plans regulated by the Financial Conduct Authority, second charge mortgages over residential property, and unregulated residential mortgages. It does not apply to Buy To Let mortgages.

Options to ask your lender for

A lender must consider whether it is appropriate, with your agreement, to:

Extend the term of the mortgage
Change the type of mortgage
Waive or defer payment of capital or interest
Reduce the interest rate being charged, or apply simple interest instead of compound interest
Treat a payment shortfall as if it was part of the original amount provided, though it must not automatically capitalise a payment shortfall where the impact would be material
Make use of any Government forbearance initiatives in which the firm chooses to participate

Before you agree anything, your lender must give you adequate information to understand the implications of the arrangement and of not agreeing one, including how it will be reported to your credit file. The Mortgage Charter 2026 sets out standards for lenders helping customers, and signatories provide additional flexibilities to manage mortgage payments over a short period. If you have not missed a payment, MoneyHelper lists three main options to ask your lender about: lengthening the term and switching back to the original term within six months, switching to interest-only repayments for six months, or an alternative arrangement such as a mortgage payment holiday. Under the Mortgage Charter, customers will not be forced to have their homes repossessed within 12 months of their first payment.

You will not qualify for a mortgage payment holiday if you are already in arrears. A holiday only suits a temporary problem, because you are still racking up interest on your remaining mortgage balance and your credit file will be affected. Check your mortgage paperwork, or ask your lender or mortgage broker, for insurance cover that can help with repayments if your income has fallen because of redundancy, accident or sickness.

Support for Mortgage Interest (SMI)

Support for Mortgage Interest (SMI) is help towards the interest payments on the mortgage for the home you live in, and you need to be getting a qualifying benefit to get it. It is paid as a loan, which you repay with interest when you sell or transfer ownership of your home.

To get SMI you must:

Yes: Have a mortgage or home improvement loan for the property you live in
Yes: Be getting income-related Employment and Support Allowance, Universal Credit or Pension Credit

SMI cannot help you pay:

No: Missed mortgage payments (arrears)
No: Anything towards insurance policies you have

Payments can start from the date you start getting Pension Credit, after you have had Universal Credit for 3 months in a row, or once you have claimed income-based ESA for 39 weeks in a row. Applying costs nothing and there is no credit check. There is no guarantee that you will get SMI for a mortgage or loan you take out. Our benefits section covers the other help you may be entitled to.

If your lender goes to court

Your lender can only repossess your home if the court gives permission.

Before a mortgage lender can repossess your home, it must:

Tell you how much you owe
Consider a request from you to change the way you pay your mortgage
Give reasons in writing within 10 business days if it does not agree to a payment proposal you make
Give you a reasonable period of time to consider any proposal it makes
Give you 15 business days notice in writing of its intention to start a possession claim, if you fail to comply with an agreement
Let your council know within 5 days of getting notification of the date of the court hearing

A lender must not consider starting a possession claim if you can show you have claimed Support for Mortgage Interest or Universal Credit from the DWP, or claimed from an insurer under a mortgage payment protection policy, and have provided all the evidence needed. If you can show reasonable steps to market the property at an appropriate price, the lender must consider postponing a possession claim to give you a realistic period of time to sell. The lender must also advise you to contact your local authority's housing department early, and give you the amounts paid over the last 2 years and the amount of arrears.

At the hearing the judge could:

Adjourn (delay) the hearing
Set aside the case
Make a repossession order
Make a suspended possession order, which lets you stay in your home if you make the regular payments set out in the order

If you do not attend the hearing, the judge will probably give your lender the right to evict you. When a repossession action starts, the court sends you a blank defence form with guidance. Return it within 14 days. An outright possession order gives the lender a legal right to own your home on the date in the order, usually 28 days after your hearing. A money order does not let your lender evict you. You can ask a judge to suspend the warrant for possession, but the judge will not automatically agree.

If you receive written notice that you need to leave your home, the Housing Loss Prevention Advice Service gives free legal advice, and an adviser can represent you at your hearing. If you hand back the keys, you are still responsible for the mortgage repayments until your home is sold, and possibly for the outstanding balance if the sale does not raise enough to pay off what you owe.

Get free help

If you have missed more than one repayment, speak to a trained and experienced debt adviser. They can advise on managing your money better, check for benefits or entitlements you might be able to claim, and tell you about the ways of dealing with debts that are open to you. Get free debt advice before you take out an additional loan to pay your debts, hand back the keys or use a sale and rent back scheme.

Secured debts such as mortgages are excluded from Breathing Space, although arrears that exist at the date of the application can be included, and a mortgage on your primary residence is an ongoing liability you must keep paying. Our Breathing Space guide covers the scheme, and our dealing with debt guide covers the wider options. Renting rather than owning? See our eviction guide.

In Wales, you can apply to the Help to Stay - Wales scheme, which offers support to homeowners in the form of a shared equity loan, if your lender cannot help you through the Mortgage Charter
In Scotland, the law for home repossession is different, and the Home Owners' Support Fund, run by the Scottish Government, may be able to help you stay in your home
In Northern Ireland, Housing Rights can help

Where to go next

Frequently asked questions

How do I deal with and clear mortgage arrears?

Start by contacting your lender. Your lender must make reasonable efforts to reach an agreement with you over the method of repaying any payment shortfall, and allow a reasonable time over which it should be repaid. If you have missed more than one repayment, a trained and experienced debt adviser can help.

What happens if I stop paying my mortgage, or it's in default, and what do I do now?

Missing a mortgage repayment puts you in mortgage arrears. Missed payments will damage your credit file, and eventually you could lose your home. A possession claim should be a last resort, and must not normally be started until all other reasonable attempts to resolve the situation have failed. What to do now: contact your lender, because the sooner you act the better.

How many months of mortgage arrears before repossession?

Mortgage arrears are sometimes defined as missing two or more monthly payments, but act as soon as you think you might miss a repayment. Under the Mortgage Charter, customers will not be forced to have their homes repossessed within 12 months of their first payment. Beyond that, a possession claim should be a last resort and must not normally be started until all other reasonable attempts to resolve the situation have failed.

Can I lose my home for mortgage arrears?

Your lender can only repossess your home if the court gives permission, and the judge could adjourn the hearing, set aside the case or make a repossession order. A suspended possession order lets you stay in your home if you make the regular payments set out in the order. Your lender must not repossess the property unless all other reasonable attempts to resolve the position have failed.

What should I do first if I can't pay my mortgage?

Contact your lender, ideally before you miss a payment. With your agreement, your lender must consider whether it is appropriate to extend the term, change the type of mortgage, waive or defer capital or interest, or reduce the interest rate. Where appropriate, it must also tell you that free and impartial money guidance and debt advice is available.

Should I hand back the keys if I can't pay?

If you hand back the keys, you are still responsible for the mortgage repayments until your home is sold, and possibly for the outstanding balance if the sale does not raise enough to pay off what you owe. Get free debt advice before you do.

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