Can I get a Mortgage after a Repossession?
Getting a mortgage after a repossession – this is the tricky one! Understandably lenders are extremely wary of lending if you have previously had a property repossessed. You will need a specialist in Adverse Credit Mortgages.
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 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.
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.