Default on Arrangement

When an arrangement has been agreed by the courts, it is on the basis that this is a preferred option to an eviction, therefore if this is subsequently defaulted on by the client, the lender has the automatic right to a new eviction order without further reason. Of course this does not mean that you cannot go to court to get this suspended again, it just makes it more difficult to persuade the judge that you will adhere to a new arrangement.

In these circumstances a greater effort must be made to contribute towards the arrears and that a good reason is given for the default in the first place. Unfortunately every time you go to court you will be charged for the lenders solicitors and any other costs incurred such as instructing bailiffs etc, don't be surprised if this costs reach £500-£1000 per time. When a redemption figure is sought there will not necessarily be a breakdown of the legal costs, we have seen many examples of legal costs being higher than the secured loan balance!

If you feel that you may have to miss a payment on an arrangement or be late, it is very important that you call the lender to inform them and write the time, date and the person you spoke to. Have no doubts they will have this information and they will use it against you in court if you haven't called them.