ABSTRACT
This chapter discusses the legal obligations on a borrower, the consequences of not being able to pay mortgage payments and the steps a lender must follow to repossess a property. Homeownership is associated with pride, higher self-esteem, better life satisfaction and increased psychological well-being. One of the key conditions of a mortgage is the obligation to pay back the loan, and any associated interest, charges and costs. Mortgage payments are priority debts and must be paid before other types of debt. Payments are collected monthly via direct debit, allowing lenders to adjust monthly payments if necessary. Firstly, mortgages are built on the assumption that people have stable employment over the life of their mortgage. Secondly, mortgages also assume that those with a mortgage enjoy good health over the term of the mortgage. Some insurance companies can offer an unlimited rebuild cost, or up to a certain limit.
