Mortgages and Repossession - Introduction

If you buy your house with the help of a loan then the lender will usually protect their interest by registering a "legal charge" against your house. This means that when the house is sold you will first have to repay the lender.

You will normally sign a document called a "legal charge" or "mortgage deed" which will say that if you do not keep up the repayments on the loan the lender can "repossess" your property. This means they can take over the property and sell it in order to pay back the loan.

If any money is left over it will be repaid to you.
Most lenders will first apply to the court for a "Possession Order" to allow them to take over the property if you are in "arrears".