Is It Possible To Get A Mortgage After A House Repossession?

October 16, 2022

One very commonly asked question is ‘can I get a mortgage if my previous house was repossessed?’ The answer to this question depends on your particular circumstances, but the short version is yes, in many cases, it is possible. However, you should take specialist advice to make sure you approach the right lenders.

Most high street lenders will be very cautious about making a mortgage offer to someone with a home repossession on their credit file, but there are specialist lenders who will look at your application on a case-by-case basis. Here’s some more detail about what you need to know.

The length of time that has passed since the repossession

The first thing the lender will look for is how long ago the repossession took place. If it was less than 12 months, it will probably be impossible to obtain a mortgage offer. Any length of time up to three years is still a very difficult prospect, unless you can back it up with a sizable deposit, and you will still be looking at high interest rates.

If the repossession was between 3 and 6 years ago, your prospects are stronger, and you will have more chance of being accepted at reasonable rates of interest, and a lower deposit amount. However, there are other factors to consider.

How much money was involved in the repossession?

If the repossession was for a high value property, or multiple properties, this will be a much more difficult obstacle to overcome than if it was for a modest amount on a single property. However, there may still be options open to you, particularly if you approach a specialist broker who has a wide experience of dealing with adverse credit mortgages.

What were the reasons for the repossession?

Some lenders will want to know more detail about how the repossession came about. If your application can demonstrate that it occurred due to circumstances beyond your control, then the lender might be willing to consider a reasonable mortgage deal for you. It’s important to present any mitigating circumstances clearly in your application.

Who was the lender who repossessed your home?

It’s important to note that many lenders are affiliated, so if you inadvertently approach one who was part of the same group, you will probably be automatically rejected, and this will further complicate your credit history. Therefore, always seek the advice of a specialist mortgage broker if you need a mortgage after a home repossession.

What other credit issues are on your file?

If the repossession is the only blemish on your credit record, this will put you in a stronger position than if there are multiple other issues. A lender will at look the number of defaults, county court judgements, late payments, bankruptcies, and so on. They will also want to see how well you have managed your finances since the repossession.

If you are looking for bad credit mortgage brokers UK, please talk to us today.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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