Friday, 21 September 2018

How to get a Mortgage after repossession

Getting a Mortgage after Repossession - This is the tricky one! Understandably lenders are wary of lending to you if you have previously been repossessed.  Borrowing up to 75% is available provided you have not been repossessed within the last 12 months. Following that, either the debt has to be forgiven by the previous lender i.e. you have confirmation in writing that you do not owe them money and the debt is cleared or you are making payments to clear the debt and you have kept these payments up to date.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.

 

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.

 

 

My Contact Details & Fees

  • La Cachette, Upper Stanley Rd, High Wycombe, Bucks HP12 4DB
  • T: 01494 526400
  • M: 07949 713563
  • steve@snmortgages.co.uk

My fee for arranging a mortgage is 1% of the mortgage amount with a minimum fee of £1,995.

What Our Clients Say

Your Privacy

We take your privacy seriously and will only use your personal information to provide details you have requested.

Privacy Policy

Use Of Cookies

Company Registration No:  04589778

Your home may be repossessed if you do not keep up repayments on your mortgage.