If you have experienced a repossession, you may be wondering if a mortgage is even a possibility. The good news is you can get a mortgage if you meet the right criteria and have the right person to help you. There are specialist lenders willing to support a mortgage after repossession and a few of them even offer competitive rates.
We have an expert team of superheroes who have a lot of experience in helping people like you. But for us to help you we need to understand your repossession. Follow the links below to get to know the different factors lenders will consider for a mortgage after repossession.
This is the most important factor when it comes to getting a mortgage after a repossession as the more recent the more difficult it is. We have provided a table below to show this. As you can see if your repossession was within the last 3 years the only way to proceed would be with a large deposit.
| Repossession date | Deposit amount | Chance of acceptance |
| Less than 1 year | NA | NA |
| 1-2 years ago | 30-35% | Difficult |
| 2-3 years ago | 30-35% | Difficult |
| 3-4 years ago | 15-25% | Possible |
| 4-5 years ago | 10-20% | Possible |
| 5-6 years ago | 10% | Possible |
| 6+ years | 5% | Possible |
Please bear in mind that criteria can change frequently so it is important to make an enquiry with us to get a true representation.
The amount of time that has passed since your repossession will have the biggest influence on the mortgage rate you are offered. If your repossession was in the last 3 years you may be looking at an interest rate of up to 6% even if you have a substantial deposit, this is because you are still deemed a risk to the lender. But if your repossession is over 3 years old the rates will reduce and could be as low as 2%. These rates will be subject to other criteria imposed by the lender and if you have other adverse credit history on your file the chances of receiving a low rate could reduce.
The size of the debt which caused the repossession will be taken into consideration too. If your repossession was owed to multiple mortgages or was for debt equating to millions of pounds you would be considered a high risk to the lender. Comparatively, if you only owed a few thousand pounds on one property the lenders may be more flexible.
Sometimes when a repossession takes place and the property is sold to recover the mortgage debt there is still a shortfall. There are not many lenders who will help you if you still have mortgage debt. So, to give yourself the best chance of getting a mortgage we recommend you clear this debt before an application. If this is unrealistic speak to our bad credit experts to weigh up your options.
We love assisting clients, especially those who have had difficulty finding the best deals elsewhere.
I applied for a mortgage from another organization after seeing an excellent offer online, but my application was declined due to my credit history. I am grateful to MoneyNest for connecting me with their broker, who discovered out what the problem was and now I am a client of theirs 🙂
I had a bad credit history and didn’t know how to apply for a mortgage. The superhero advisors from MoneyNest came into my life when they matched me with an agent who found the perfect lender willing to take on such risk, giving us both hope that there are still opportunities out here!
This is another area to consider as some lenders may be more lenient depending on the circumstances behind your repossession. For example, you may have been a victim of fraud or ran into financial difficulties from an accident or ill health. If this is the case lenders would need evidence to support your application.
This flexibility is only available with the right bad credit mortgage lender. Our mortgage experts know which lenders would suit your situation, so let our superheroes present your application in the best manner and help you find the right mortgage for you!
Many lenders are a part of the same banking group and it is likely that if you had a repossession from one lender you will not get a mortgage with another provider from the same group. For example, HSBC, First Direct and M&S bank are a part of the same group. So, if you had a repossession with HSBC it is unlikely First Direct will offer you a mortgage.
If your credit issues are holding you back, our credit expert hero’s are here to set you free!
To start the process, it would be ideal for you to consult a bad credit mortgage advisor to determine your next steps. This is important as going straight to a lender or bank could result in a decline which will only negatively impact your credit file. Our experts can support you with this but first, you will need to get hold of your credit report from the 3 main agencies, TransUnion, Experian and Equifax. These reports will determine where your credit status stands and which bad credit mortgage broker you will need.
The repossession will stay on your credit report for 7 years from the original missed payment date, once these 7 years have passed it will drop off your report altogether. This does not automatically mean that you will be accepted for a mortgage after the 7 years as many lenders will see any history of repossession as an automatic no. But in general, the older the repossession the better.
Your credit reports will highlight any other adverse credit history you have experienced such as late payments, IVAs, bankruptcy, arrears, defaults and debt management plans. It is common for someone who has experienced repossession to have other credit issues as usually if you have entered into financial difficulties your mortgage is the last payment that stops. It is essential to go through these issues with your broker as they will impact the lender they recommend. If these issues have occurred since your repossession it will influence your creditworthiness as lenders may assume that you are still experiencing financial difficulties and as such assume you may not be able to pay your mortgage commitments.
Follow the links to get in touch as our superheroes are waiting to help you!
