If your loan was taken out to help you buy something (other than your property or repairs or alterations to your property), but the loan is secured as a charge against your property, the court may have greater powers when it comes to considering the question of repossession:

If the loan is not for more than £15,000 then the Consumer Credit Act says that the lender before taking any action against you must send to you what is called a "default notice".

This is a form, which must have certain information on it including how you have breached your agreement with the lender. If you put right the breach then no further action will be taken by the lender.

If you receive a "default notice" you can apply to the court for a "time order", (either before or after the lender applies for a possession order). A "time order" can state what amounts you are to repay the lender bearing in mind your financial circumstances.

The court has a discretion and can decide how much it is fair for you to repay.

The court can also make the usual orders about suspension or adjournment of possession proceedings.

See Alternatives to a Possession Order

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