Mortgage After Repossession

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

Can I get a Mortgage after a Repossession?

Getting a mortgage after having your home repossessed is one of the single most difficult applications to get approval on. Naturally, if you haven’t been able to keep up with mortgage payments in the past, to the point where your home has been repossessed, this would be a big red flag to new lenders. Thankfully, it’s not impossible, and I work with a small selection of lenders who are willing to provide mortgages to those who have had their homes repossessed. 

How much can I borrow on a mortgage after repossession?

Borrowing up to 75% is available (possibly more if it was over 3 years ago) provided you have not been repossessed within the last 12 months and have no other adverse (again within the last 12 months) and;

  • Either the debt has to be forgiven or repaid to the previous lender and you have confirmation in writing that you do not owe them money and the mortgage is cleared, or…
  • You are making payments to clear any outstanding debt if the property was sold for less than the mortgage and you have kept these payments up to date.

The details of your repossession matter when applying for a new mortgage 

The reason behind why the lender repossessed your home is important as well as when it happened. The longer the time period the better and if the reason was because you were ill or made redundant, and you had been paying off any shortfall for the past 2,3 or 4 years for example, gives the lenders comfort you are a responsible borrower with a moral compass !

If on the other hand you have been reckless with managing your finances running up credit cards and loans and then decided it was all too much so decided to simply hand back the keys to your property and walk away from the situation, lenders quite rightly are not going to consider giving you a mortgage so you can do the same again.

If you need help or advice on any aspect of repossessions before the situation gets out of hand, go to the website of Shelter who offer free help and support and a land line that is manned 365 days of the year.

Do I need a broker for a mortgage after repossession?

Getting a mortgage after a repossession is one of the most difficult situations for any mortgage broker. Going it alone means applying without knowing the full lending criteria of individual lenders, which can lead to rejections which will harm your chances of future applications.

Using a specialist adverse mortgage broker to apply for a mortgage after a repossession gives you the advantage of knowing the lending criteria upfront, and whether you are likely to be accepted or not based on your own individual circumstances, and helps to avoid the rejection cycle. A broker can also help you to find the best deal, by comparing lenders who might be willing to help, as well as their rates and fees.

For more information on how I can help you with a mortgage after repossession, please call me on: 01494 526400 or complete my online enquiry form.

Mortgage After Repossession

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

Can I get a Mortgage after a Repossession?

Getting a mortgage after having your home repossessed is one of the single most difficult applications to get approval on. Naturally, if you haven’t been able to keep up with mortgage payments in the past, to the point where your home has been repossessed, this would be a big red flag to new lenders. Thankfully, it’s not impossible, and I work with a small selection of lenders who are willing to provide mortgages to those who have had their homes repossessed. 

How much can I borrow on a mortgage after repossession?

Borrowing up to 75% is available (possibly more if it was over 3 years ago) provided you have not been repossessed within the last 12 months and have no other adverse (again within the last 12 months) and;

  • Either the debt has to be forgiven or repaid to the previous lender and you have confirmation in writing that you do not owe them money and the mortgage is cleared, or…
  • You are making payments to clear any outstanding debt if the property was sold for less than the mortgage and you have kept these payments up to date.

The details of your repossession matter when applying for a new mortgage 

The reason behind why the lender repossessed your home is important as well as when it happened. The longer the time period the better and if the reason was because you were ill or made redundant, and you had been paying off any shortfall for the past 2,3 or 4 years for example, gives the lenders comfort you are a responsible borrower with a moral compass !

If on the other hand you have been reckless with managing your finances running up credit cards and loans and then decided it was all too much so decided to simply hand back the keys to your property and walk away from the situation, lenders quite rightly are not going to consider giving you a mortgage so you can do the same again.

If you need help or advice on any aspect of repossessions before the situation gets out of hand, go to the website of Shelter who offer free help and support and a land line that is manned 365 days of the year.

Do I need a broker for a mortgage after repossession?

Getting a mortgage after a repossession is one of the most difficult situations for any mortgage broker. Going it alone means applying without knowing the full lending criteria of individual lenders, which can lead to rejections which will harm your chances of future applications.

Using a specialist adverse mortgage broker to apply for a mortgage after a repossession gives you the advantage of knowing the lending criteria upfront, and whether you are likely to be accepted or not based on your own individual circumstances, and helps to avoid the rejection cycle. A broker can also help you to find the best deal, by comparing lenders who might be willing to help, as well as their rates and fees.

For more information on how I can help you with a mortgage after repossession, please call me on: 01494 526400 or complete my online enquiry form.

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Hentschel – 29th May 2024

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Anon – 4th March 2024

Steven and Sue have been absolutely wonderful throughout the whole mortgage application process. Even when we were unsuccessful with our first application which left us panicking, Steven remained calm and professional, informed us there were plenty of other options and worked quickly on a new application suited to our needs. Steven would answer his phone efficiently and if he missed us, he would call back immediately, something which can be quite rare these days. We would recommend Steven and Sue to anyone that maybe struggling with the whole mortgage process, especially the self employed, they took all the stress from us and deserved every single penny we payed them. We will absolutely be returning to Steven and Sue in the future and only wish we had found them sooner. We found them to be invaluable and an absolute pleasure to deal with, they are the reason we can finally sleep well at night! Thank you both again.

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Anonymous – 6th February 2024

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Martin – 2nd January 2024

I have felt very well looked after throughout this process, and advocated for, to meet my individual financial needs. The communication between Steven, Sue and I has been of the highest standard, and I could not have asked for more. I was treated without prejudice, and with understanding, and I am so happy that I have been able to buy a home which my daughter and I can now settle into, and start a new chapter. Thank you so much Steven and Sue!

Hentschell – 21 November 2023

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