Mortgages after Repossession

Many people come to us feeling scared. They believe that if they have had a property repossessed, it will stop them from ever getting a mortgage again. Depending on your circumstances, there are indeed options available to help people in your situation.

We have a number of calculators available to help you understand if you can afford mortgage payments or if you may be able to get a mortgage with an adverse credit history.

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Author: Carl Shave - CEO and co-founder
Last updated: 30 May 2024

How much can I borrow if I have been repossessed?

With an exemplary credit record, you would expect to be able to borrow up to five times your annual income. With a repossession in your history, the amount of credit extended will be lower. As with all mortgage applications you will be subject to an affordability assessment.

As a general rule:

Time after repossession May be able to borrow
Between 12 to 36 months 3 x income
Between 3 to 6 years 4 x income
Over 6 years 5x income


Bad Credit Topics

Whether it be late payments, defaults or CCJs, we’re here to help you secure a mortgage.

Useful Information

Is it possible to get a mortgage after a house repossession?

  • It is possible to get a mortgage with a repossession.
  • Learn to understand your credit report and how it can affect your chances.
  • Speak to a specialist broker to help you through the process and get the right deal for your circumstances.
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Mortgage rates if I have been repossessed

If you have previously had a property repossessed the rate available will typically be higher than that for a conventional mortgage. Especially the closer in time to when the repossession occurred

Unfortunately, we are not able to list interest rates on repossession mortgages here, as they fluctuate with time. New products can also come onto the market at any time as and when market forces demand.

To get a competitive rate after repossession, you must go to a specialist lender. This applies for the two to five years following the repossession. Typically, these lenders do not advertise their rates on the high street or online.

The most suitable course of action is to consult with an expert mortgage advisor. Particularly one with experience in dealing with applications from people with bad credit as we do.

Our initial consultations are free. We’ll be able to identify your options going forward, and exactly which lenders may be able to help. Getting the right mortgage product and interest rate for your circumstances

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How do I get a mortgage after repossession?

A previous mortgage repossession will very likely reduce the number of lenders available to you. However, some people with a mortgage repossession can, and do, go on to get new mortgages. Below we have outlined a few simple steps to take that may help.

You can never have too much paperwork when thinking about a mortgage. This is especially the case if you have a repossession in the past. Keep as much of the paperwork from the time as you can.

It may be painful reading but it can prove invaluable for evidence when applying. Ensure you have your bank statements. This can be much easier now with online banking. Also, have proof of income such as payslips or tax returns.

Not only check to see if the repossession is noted but also check any other items of credit. Also check if you are on the electoral register. This can help massively if applying for a mortgage after a repossession. Remember, even if your repossession does not show, you will still have to declare it if asked on your application.

Ensure you speak to a specialist broker. Getting a mortgage after a repossession can prove difficult. Using the services of someone who knows this market can be invaluable.

Our specialist bad credit mortgage advisers can offer free, no-obligation, initial advice. Get in touch now to arrange a consultation and find out what your options could be.

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Carl Shave

CEO and co-founder

About the author

Carl Shave has been involved in the mortgage & finance industry since leaving education and is one of the co-founders of Just Mortgage Brokers. He has written guest posts and provided journalist comments for companies such as The Times, FT Adviser, Mortgage Strategy, Mortgage Solutions and others, demonstrating his extensive industry knowledge.

Mortgages after Repossession FAQs

It’s almost certain that, if you’ve had a property repossessed, you’ll need to put down a larger deposit on any subsequent new mortgage. However, the time that has elapsed since the repossession took place will be a factor. The more recent the repossession, the bigger the deposit you will be expected to put down.

Time elapsed since repossession Likely deposit needed
Between 1 – 3 years Approx 30% – 35%
Between 3 – 4 years Approx 15% – 20%
Between 4 – 6 years Approx 10%
6 years and above Approx 5%

The criteria used by both specialist lenders and high street banks will vary from lender to lender and change over time. Talk to one of our mortgage experts after a repossession to get an accurate appraisal of your options in the current climate.

Many homeowners have lost their properties due to factors beyond their control. Examples include the credit crunch and changes in certain sectors due to Brexit. However, they have recovered from this and are now financially stable. This allows them to put down a deposit on a house or flat.

Mainstream lenders will typically take a very cautious approach. There are other specialist lenders who are prepared to consider applications from people with a repossession. Conditions vary from lender to lender.

Those specialising in particular bad credit niches are perhaps being able to offer the most flexibility. So, while your situation may be more difficult than most, it may not be impossible.

The details of the repossession

When it comes to the actual repossession, then a potential lender will want to know:

1. When did the repossession happen?

As with so many adverse credit events, as a general rule of thumb the longer ago it was, the better. Repossession in the past 12 months drastically reduces your chances of getting a mortgage. It is almost impossible to be offered one.

It would be beneficial to wait before applying. Focus on rebuilding your credit and saving up for a deposit. This will help you in the long run. If it happened longer than one year ago, then getting a mortgage will still be tricky but it’s not impossible.

The age of the repossession will impact the loan-to- value (LTV) ratio. The remainder will have to be paid as a deposit.

2. Why did the repossession happen?

The reason your property was repossessed is an important element. If you were the victim of fraud or were affected by a reason outside of your control, you are likely to be treated more sympathetically. You will need evidence to back up your claim. Our experts know the best way to present such information so that it helps rather than hinders your application.

3. How much money was involved?

Arguably, ‘how much’ is a less important factor than ‘how long ago’, but it does still have an impact. For example, if the repossession related to the only property on which you had a mortgage. If the amount or percentage of the loan was small, it will be seen more positively. This is likely to result in a better outcome.

It’s all about perceived risk: the lower the value and the fewer the mortgages involved, the better.

4. Who was the lender?

The reason this is a factor is that many lenders are members of banking groups owned by the same parent company. For example, HBOS (Halifax/Bank of Scotland group) comprises AA, Bank of Scotland, Birmingham Midshires, Halifax, Intelligent Finance, and Saga.

That means that while each lender has a different name, you are effectively applying to the same company. If a bank repossessed your property, you’re likely to be denied a mortgage from any within the group.

At Just Mortgage Brokers we understand the relationships between lenders. We can help you avoid making time-wasting applications that can further affect your credit record.

5. Do you still owe money to the lender?

If you still owe money to the lender who repossessed your property, then that is likely to affect your chances. It may also affect the amount you would be asked to provide as a deposit.

Paying off debt can affect the amount of money you have for a new loan. If you are still paying off debt, this could reduce the amount you can borrow. Lenders assess your ability to repay a mortgage by looking at both your income and expenses. This is known as mortgage affordability. The decision as to how much they are prepared to offer is based on this affordability assessment.

6. Are there any other adverse credit events on your record?

When people are in financial difficulties, they generally do whatever is necessary to keep a roof over their heads. This is perfectly understandable, but it also might mean that other payments were withheld in order to keep on paying the mortgage for as long as possible.

That means that as well as having had a property repossessed, there are likely to be other adverse credit events on your credit record. These might include:

People with a bad credit history are considered by lenders to be a greater risk. In turn, they are usually not able to borrow as much as those with an exemplary record.

If you were declared bankrupt as well as having the property repossessed, then that is also an issue. Most lenders will ask if you have ever been bankrupt or had a property repossessed. It is important to be honest here (they will check). That makes contacting a specialist bad credit mortgage broker even more important.

Try our bad credit mortgage calculator.

Lenders will look for evidence that you have maintained your finances in good order since the repossession. They will not want to see new adverse credit events, such as defaults or CCJs. They are likely to be more welcoming of offering credit. This is especially true if the person can prove that their difficulties were just a blip.

You cannot undo events from the past. You can however perhaps improve your credit score with some easy steps.

There are several lenders on the market that you won’t find on the high street or online. These will specialise in products designed to help people in a number of bad credit situations, including repossession.

The right mortgage lenders to deal with are those specialists who understand that people are sometimes victims of circumstance. Past financial difficulties do not define your current risk level. You are not necessarily a high risk now.

These lenders will take a view of your circumstances and make assessments of your current ability to meet mortgage repayments. To them, a repossession does not brand you for life.

Time since repossession Possible Lender
12 months + Bluestone Mortgages
2 years + MBS Lending
3 years + Kensington Mortgages
6 years + Variety of lenders available

Your current financial standing will depend on a number of things. The main one is how long ago your financial problems happened.

Broadly speaking, those with good credit records and/or few other financial commitments can borrow more. This is in terms of both amount and percentage of property value.

If your property was repossessed within the last 12 months your chances of getting a mortgage are slim to none.

The further you get past that one-year threshold, the better your chances of acceptance become. After six years, the event will drop off your credit record and that will make things easier again.

If you have purchased since your repossession using a mortgage you may wish to remortgage in the future. Ensuring this current mortgage is kept up to date will be hugely influential in your choice of lender. The same rules will still apply. The longer period since the event the greater choice you should have.


A house repossession record will remain on your credit file for 6 years. However, do note you will still need to divulge this on an application if asked regardless of it showing. Failing to do so is a criminal offence.

The good news is that many specialist lenders will be prepared to lend to you while it’s still on your record. Stringent criteria will become more flexible as more time passes without you adding any further bad credit events to your file.

Yes, if you’re asked about a repossession, you have to declare it. The issue with a repossession is that, like bankruptcy, it’s seen as a serious adverse credit event.

In both cases, after the details have disappeared from your credit report, you may be asked if you have ever experienced them. Not being truthful puts your mortgage and new home at risk.

Repossession really is the last resort and lenders will only pursue this if all other options have been considered. It is therefore important to ensure you maintain good communication with your lender. Keep them informed of your financial situation and take on board any suggestions they may offer.

Speaking to a good specialist adviser may also help. It’s likely all avenues have been considered by your lender if a repossession order has been issued. However, a third party may be able to offer alternative ideas.

There are certain procedures your lender must take before issuing a repossession order. Speak to a help centre such as the Citizens Advice Bureau who will be able to assist with this. They can also offer help and assistance with your options now and moving forward.

Why use Just Mortgage Brokers for your mortgage after repossession?

At Just Mortgage Brokers, we have a specialist bad credit team that helps our clients secure an affordable mortgage after repossession. If you have a less-than-perfect credit history, then you are best served by specialist lenders that you won’t find on the high street.

  • We have many years of experience working with a network of bad credit lenders across the UK.
  • We know where to find a mortgage to suit the particular needs of each and every client. With exclusive rates that are not available on the high street, we can help you fully consider your options.
  • We can also help you with your mortgage application and provide personalised mortgage advice.

Get in touch today for free initial advice and no-obligation quotes from our team of experienced bad credit brokers.

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