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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.

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

Consumer Credit Act

Secured loans and second mortgages are usually regulated by the Consumer Credit Act. This page explains how you can tell if you are protected by the Act. If you are, your lender will have to go through an extra process if you get into arrears, before beginning repossession proceedings. More about the Consumer Credit Act

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 a default notice. Notice of sums in arrears and what you should do if you get one

Default notices

If you have a secured loan or second mortgage that is covered by the Consumer Credit Act, your lender must send you a default notice before they can start the standard repossession procedures. What to do if you are sent a default notice.

Time orders

If you have received a default notice because you have missed payments to a secured loan or second mortgage, you may be able to apply to the sheriff court for a time order allowing you to repay your loan and the arrears and preventing your lender from taking further repossession action. Find out if and how you can apply for a time order


The Home Owner and Debtor Protection (Scotland) Act 2010 came into force 30 September 2010, causing major changes to mortgage repossession law. Get advice on the law and how it might affect you.