Mortgage After Repossession
Updated 20th November 2021.
Mortgage After Repossession Advisors.
Our Mortgage Experts Online accredited advisors are specialists in mortgage after repossession.
Furthermore, our expert’s knowledge will help you to find the right mortgage on the market to meet your specific requirements.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there.
As a result, this may feel completely overwhelming to you and you may have no idea where to start.
We can offer you guidance and help you navigate the complex world of mortgage after repossession.
In addition, the brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s about mortgage after repossession.
Mortgage After Repossession Topics.
- Can I get a mortgage after a repossession?
- Date of repossession.
- How much deposit will I need after a repossession?
- What will lenders want to know about my repossession?
- How much can I borrow if I have been repossessed?
- What mortgage rates will I get if I have been previously repossessed?
- Outstanding debt from a repossession
- Do I have to declare a repossession if it’s not on my credit report?
- Speak to a repossession mortgage advisor
Can I get a mortgage after a repossession?
The answer is yes, it is possible, but its trickier. Expert advice is therefore vital to get you back onto the property ladder.
Every lender has their own criteria around mortgage after repossession. Some lenders will never be able to offer you a mortgage if you have had a repossession.
Others will need the repossession to have been over so many years ago, and most lenders will also need to know if there was a shortfall (outstanding debt) because of the repossession.
Being upfront and honest about the situation is vital. If you try and hide this from the lender it will not get picked up until the solicitors’ searches towards the end of the house buying process.
A repossession will stay on your credit file for 6 years from the date of registration but will always be found when the searches take place at the time of conveyancing.
Solicitors will also conduct a bankruptcy search at this stage.
When combined with repossession this can complicate things even further, with only a handful of lenders willing to grant a mortgage.
The mortgage experts we work with are vastly experienced at arranging mortgage after repossession.
For the most up to date information make an online enquiry or call us 0300 124 5655
Date of Repossession.
One of the first questions any lender will ask you is when the repossession happened.
The more recent the repossession the less mortgage options will be able; you will be perceived as a high-risk client by any mortgage lender.
The recently of the repossession will affect the deposit levels required and the interest rates on offer.
If the repossession occurred over 3 years ago, you could be offered close to high street rates with a good deposit being put down.
If you have been repossessed within 12 months, then at present there aren’t any mortgage options.
1-3 years since repossession
You will be looking at between 25-35% deposit.
3-6 years since repossession
You will need between 10-25% deposit. The repossession mortgage lenders will now see you as lower risk, as such you will need a lower deposit.
The mortgage rate offered will also be lower.
Over 6 years since repossession
The mortgage market will be easier to obtain a mortgage after repossession and there will be options available a 5% deposit, dependent on current credit history.
How much deposit will I need for a mortgage after repossession?
This will ultimately come down to the date you were repossessed. However, if it been 3 years or less you will need at least 30-35% deposit.
Once it has been over 3 years the criteria relaxes slightly and there will be options starting at 15% deposit.
After 6 years you may be able (credit score dependent) to get a mortgage with as little as a 10% deposit.
This is an ever-changing market and speaking to one of our mortgage experts will give you the most up to date information.
What will lenders want to know about my mortgage after repossession?
They will want to know the following.
- Date of repossession.
- Circumstances around the repossession.
- Credit profile since the repossession.
- Any debt outstanding form the repossession.
- Were you made bankrupt at the same time?
As with most of the bad credit mortgages, the longer ago the repossession was the better.
The reason for the repossession is also going to play a big role in any new lender who looks at your application.
Getting a mortgage after repossession involves being honest from the start.
How the information is presented to the lender is of paramount importance.
Any evidence to back up your case will be needed and give you a better chance of success.
The lender with whom the property was repossessed will have a bearing on which lenders would be willing to look at any application.
For example, Royal Bank of Scotland and NatWest are jointly owned, so if you have had a repossession with one its extremely unlikely the other would accept you.
If you have had any bad credit since the repossession this is also going to go against you. Lenders will be wanting to see that you have learnt any lessons from previous mistakes.
Getting a mortgage after repossession is possible but will involve a more complex application.
To check your latest credit report click here.
How much can I borrow if I have been repossessed?
With a clean credit report, you may be able to borrow up to 5 x your income.
As with any mortgage application you will be subjected to the same affordability checks as anyone else.
With an historic repossession the lender is going to want to ensure that you can meet the monthly repayments and are not in any current financial difficulty.
To get a mortgage after repossession the lender will want to be sure it will not happen again.
What mortgage rates will I get if I have been previously repossessed?
If your repossession were over 6 years ago and the high street lender accepted this as part of their criteria, you would be offered the same rate as everyone else.
If you need to approach a specialist lender then it will be down to their rates at the time of application. Interest rate for bad credit mortgages is generally higher.
Outstanding debt from a repossession.
Some homeowners who have been repossessed may still have some debt owed to the mortgage company.
This happens when the property is sold, and the proceeds do not cover the full mortgage amount owed.
This can influence your next mortgage application, and which lenders would consider you. Telling your mortgage experts all the facts at the outset is paramount.
Do I have to declare a repossession if it is not on my credit report?
Yes, some lenders do not allow repossessions. However, if it is not showing on your credit report you may pass the initial checks only to be declined further down the line.
Your mortgage broker is unable to know if you have been repossessed if it is not on your credit report.
The solicitors will perform a check at a later stage. Always be upfront and honest with your broker and mortgage lender.
Speak to a mortgage after repossession advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need.
However, just because one lender has declined you, do not give up.
To get a mortgage after repossession our mortgage experts will get all the facts before deciding which lender is right for you.
All the mortgage brokers we work with are whole of market and offer unbiased advice.
They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The expert brokers we work with have experience in dealing with all aspects of repossession mortgages.
Importantly using the whole of the market to access the absolute best deals available.