01
Free independent advice, first
Before any product is discussed. The organisations above can negotiate with your lender, check whether the arrears figure is correct, and set out options that involve no new borrowing at all.
Complex cases
“My lender has started possession proceedings”
Refinancing can sometimes repay a lender who has begun possession proceedings, but only where there is real equity and a genuine, evidenced way of repaying the new loan. Free independent debt advice should come first, because borrowing more is not the right answer in every case.
Free, independent help is available firstIf you are struggling with mortgage arrears, free and impartial help is available now and it will not cost you anything. MoneyHelper (moneyhelper.org.uk), StepChange (stepchange.org), Citizens Advice (citizensadvice.org.uk) and Shelter (shelter.org.uk) all give free advice on mortgage arrears and possession. Speak to them before you take on any new borrowing, including ours. If a case is not in your interests we will tell you so.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- You have received a claim form or a court date for possession
- There is meaningful equity in the property
- There is a realistic route to repaying a new facility — a sale, or restored income
- You have not yet taken free independent advice
The situation
Possession proceedings are frightening, and that fear is exactly why this situation attracts poor advice and expensive products. It deserves a careful, honest answer rather than a quick one.
Short-term finance can work here in a narrow set of circumstances: where equity is substantial, where the arrears arose from something that has genuinely changed, and where there is an evidenced exit — usually a sale at a realistic price, or a refinance onto a term product once circumstances have stabilised.
It does not work where the underlying problem is an ongoing shortfall between income and outgoings. In that case new borrowing postpones the problem at considerable cost and can leave you with less equity than if you had sold.
Why the usual lenders say no
- Live arrears and possession proceedings are a decline for virtually every mainstream lender.
- Affordability cannot be evidenced where payments are not being met.
- The timescale imposed by a court date is far shorter than a mortgage application.
What usually works
02
Talking to your existing lender
Lenders are required to treat customers in arrears fairly and to consider forbearance. A payment arrangement, a term extension or a temporary switch to interest only may be available and costs nothing.
03
A refinance where there is real equity and a real exit
A bridge can repay the existing lender and stop the proceedings, but only where the new loan itself has a credible way of being repaid. Without that, it moves the problem a few months.
04
A controlled sale
Sometimes the right answer. Selling on the open market at a sensible price almost always realises more than a possession sale, and preserves the equity that would otherwise be spent on costs and default interest.
Roughly how the numbers look
| Equity needed | Substantially more than on a routine case |
| Pricing | Higher than standard bridging, reflecting the circumstances |
| What lenders require | A clear, evidenced exit — not an intention |
| Cost of doing nothing | Arrears, legal costs and default interest continue to accrue |
Any new borrowing must be repaid. If the exit is not genuinely there, a refinance makes the position worse rather than better, and we will say so. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- Full details of the arrears and the current court position
- A redemption statement from the existing lender
- An honest picture of income and outgoings
- Your exit: an agent’s appraisal for a sale, or evidence of restored income
- Details of any other secured or unsecured debts
- Confirmation that you have taken, or been offered, free independent advice
Things that catch people out
- Be very wary of anyone offering to buy your property quickly at a discount to "rescue" you. Take independent legal advice first.
- Sale-and-rent-back arrangements are heavily restricted for good reason. Do not enter one without regulated advice.
- If the shortfall is ongoing rather than temporary, more borrowing is unlikely to be the answer.
Questions we get asked
Can refinancing stop a repossession?
It can, where the new facility repays the existing lender and there is a genuine way of repaying it in turn. It is not a solution where the underlying problem is an ongoing income shortfall, and in that situation it usually makes matters worse.
Where can I get free help?
MoneyHelper, StepChange, Citizens Advice and Shelter all provide free, impartial advice on mortgage arrears and possession proceedings. None of them charges, and all of them can act before you take on any new borrowing.
Will you tell me if borrowing is the wrong answer?
Yes. We are paid only if a case completes, and we are telling you plainly that this is a situation where that incentive points the wrong way. If the numbers do not work, we will say so rather than arrange something that harms you.
The product that usually fits
See how it worksEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
Related situations and guides
“I have defaults on my credit file but the deal itself is strong”
Your credit file has marks on it, and mainstream lenders have stopped reading past that.
Read the scenario“I need to raise money quickly against a property I already own”
The equity exists but a remortgage will not complete in the time available.
Read the scenarioBridging loan exit strategies explained
Sale, refinance or something else: how lenders underwrite your exit, what evidence they want, and what happens if the exit slips.
Read the guideHow much does a bridging loan cost?
Every cost in a bridging loan, from the monthly rate to the fees that get added to the balance, with a worked example you can check in our calculator.
Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.