Arrears on secured loans and second mortgages

If you miss payments to your secured loan or second mortgage, your lender could take action to repossess and sell your home. This section explains more about the procedure your lender must follow and action that you can take to delay or prevent your home from being repossessed. This procedure is slightly different to the standard repossession process.

If you took your loan out before 6 April 2008 and it was for more than £25,000 (or £15,000 if the loan was taken out before 1 May 1998), the lender must use the standard repossession procedure.

The page about secured loans and second mortgages explains how they differ from first mortgages and looks at what you can do if you get into arrears.

Housing laws differ between Scotland and England
This content applies to Scotland only
Get advice if you're in England

  • Consumer Credit Act

    Secured loans and second mortgages are usually regulated by the Consumer Credit Act. The Act protects you because your lender will have to go through extra steps before repossession.

  • Notices of sums in arrears

    If you fall behind with the payments to a secured loan or second mortgage, your lender must first send you a notice of sums in arrears. They must do this before they can send you

  • Default notices

    If your secured loan or second mortgage is covered by the Consumer Credit Act, your lender must send you a default notice before they can start the repossession procedures.

  • Time orders

    If you've received a default notice from missing your secured loan or second mortgage payments, you may request a time order to pay the loan, arrears and stop the lender taking further action.

Speak to a Shelter Scotland adviser

Call Shelter Scotland's free housing advice helpline

0808 800 4444
9am-5pm, Monday to Friday

Email an adviser

You can also email a housing adviser. We aim to respond within three working days.

Was this page helpful?