- 0330 043 3643
- [email protected]
- Fix Mortgages. The Enterprise Centre. Corporation St, Tamworth, Staffs B79 7DN.
Need a new mortgage after a repossession? Let us see if we can help.
You can still get a mortgage after you’ve been repossessed. But it’ll be more difficult this time around. Repossession is stressful and emotional time. Unfortunately, most high street banks won’t consider you at all after a repossession. They’ll see it in your credit history and it’s an instant no. That’s why it’s important to work with a specialist broker who will take the time to understand you and your circumstances.
If you’ve been repossessed in the past, we will endeavour to source a specialist lender who will be happy to consider you and look at your unique situation.
They’ll look at:
When they look at these factors, a lender will be working out if you’ve financially recovered from the repossession before they offer you a mortgage. If you’ve shown you’re stable by paying other creditors on time, they’ll be a lot more willing to offer you a mortgage at a competitive rate.
Getting a mortgage after a repossession is more difficult than for someone who has a great credit report. A previous repossession makes lenders nervous because it suggests that you weren’t able to keep up on payments – making you a ‘high risk’ borrower. But we know that life can throw us curveballs, and how hard people work to change their financial situations.
The effect that a repossession will have on your chances of getting a mortgage approved depends upon:
Even if you’ve previously been declined by a high street lender, that doesn’t mean that another lender won’t give you a mortgage. What’s important is that you’re able to demonstrate the steps that you’ve taken to turn around your financial situation.
A specialist lender will want to know:
A major factor a lender will look at is how you have managed your finances since the repossession. They would not want to see any other credit issues like defaulted payments, late payments or CCJs after the initial repossession. They are more likely to consider you for a mortgage if you have proved you are in a more stable financial position now, by keeping up to date with any other credit commitments post repossession.
The amount you will be able to borrow will depend on how recently the repossession was, what your current income level is and the different types of income you may receive. We will run affordability assessments to establish how much might be permitted to you based on these factors.
These are the latest deposit requirements.
Repossession
Less than 1 year ago:
Trying to obtain a new mortgage within this time frame is not possible.
1-2 years ago:
A few specialist lenders might be willing to consider you. if you can put in a deposit of 30%-40%.
2-3 years ago:
More lenders will be available requiring a deposit of 25%.
3-4 years ago:
During this period you will perceived as ‘lower risk’ to mortgage lenders. Meaning that deposit levels of around 15%-25% will be acceptable.
4-5 years ago:
You will need around a 10-20% deposit and should qualify for high street interest rates.
5-6 years ago:
After five years, you need to have a 10-20% deposit.
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