Let’s Talk About Getting a Mortgage After Repossession
We get it—going through a repossession is tough. But here’s the good news: it doesn’t mean you’ll never be able to get a mortgage again. At Mortgage Bridge, we help people in all kinds of financial situations find the right mortgage, including those who’ve faced repossession. If you’re looking to get back on the property ladder, we’ve got your back.
What Actually Happens When Your Home is Repossessed?
Repossession happens when a lender takes back a property because of missed mortgage payments. It’s the last resort after trying to work things out with you. Not only do you lose your home, but it can also leave a mark on your credit file for up to six years, making it harder to borrow money again.
That said, it’s not the end of the road. Many people who’ve been through repossession have successfully bought homes again—we see it happen all the time.
You might be wondering, “How long after repossession can I get a mortgage?” The short answer? It depends on things like your credit score, how much you’ve saved, and how well you’ve bounced back financially.
Steps to Rebuild Your Credit After Repossession
The first step to getting a mortgage again is making yourself as attractive as possible to lenders. Here’s how:
1. Check Your Credit Report
- Get a copy of your credit report from all major credit agencies.
- Look for mistakes—if something’s wrong, get it fixed.
- Make sure your old repossession is recorded correctly and check for outstanding balances.
If you’re asking, “How do I rebuild credit after repossession?”, it starts with making sure your credit file is accurate and free of errors.
2. Get Your Finances in Order
- Set up a budget and stick to it.
- Pay bills on time, every time—it’s the easiest way to show lenders you’re responsible.
- Avoid unnecessary borrowing and focus on clearing existing debts.
3. Use Credit Wisely
- A credit-builder credit card or loan can help rebuild your score.
- Only use a small portion of your credit limit and always pay it off in full.
- Register on the electoral roll—it’s a small thing that makes a big difference.
Looking for “credit-building tips after mortgage repossession”? Following these steps will help you get back on track.
4. Save for a Deposit
- The bigger the deposit, the better your chances of approval.
- Aim for at least 15-20% of the property price.
- Lenders like to see you’ve got some financial stability.
Wondering, “How much deposit do I need after repossession?”? Generally, the more, the better. A bigger deposit means you’re less of a risk to lenders.
5. Speak to a Mortgage Broker (Like Us!)
- We know which lenders are willing to work with people who’ve had repossessions.
- We can guide you towards specialist lenders and the best options for you.
- A broker can save you time and improve your chances of approval.
How Long Should You Wait Before Applying for a Mortgage?
Repossession stays on your credit report for six years, but that doesn’t mean you have to wait that long.
- 1-2 years after repossession: It’s tricky, but some specialist lenders might consider you.
- 3-4 years after repossession: More lenders start to open their doors, though interest rates may still be higher.
- 5-6 years after repossession: If you’ve rebuilt your credit and saved a good deposit, your options improve significantly.
A common question we get is “Can I get a mortgage 6 years after repossession?”—yes, absolutely, especially if you’ve taken steps to improve your credit and finances.
Mortgage Options After Repossession
So, what kind of mortgages are available if you’ve had a repossession? Here’s what we usually recommend:
1. Specialist Lenders
- Some lenders cater specifically to people with past repossessions.
- You’ll likely need a bigger deposit and may face higher interest rates.
- We can help find the right lender for your situation.
If you’re searching for “best mortgage lenders for bad credit and repossession”, specialist lenders are the way to go.
2. High-Deposit Mortgages
- A larger deposit makes lenders feel more comfortable lending to you.
- If you can put down 20% or more, you’ll have better chances of approval.
3. Guarantor Mortgages
- A family member or close friend agrees to step in if you miss payments.
- This makes you a less risky borrower.
Many ask us, “Can I use a guarantor to get a mortgage after repossession?”—yes, and it can be a great option if your credit still needs work.
4. Government Schemes
- Some schemes might be available to help first-time buyers or those with smaller deposits.
- These could help make a mortgage more affordable.
If you’re wondering “Can I use a government scheme after repossession?”, we can help check your eligibility.
5. Joint Mortgages
- If your partner or co-applicant has a good credit history, it can improve your chances of approval.
- Lenders look at both applicants’ financial situations.
Final Thoughts
Look, we know repossession is a tough thing to go through, but it doesn’t mean you’re out of options forever. At Mortgage Bridge, we help people every day who thought they’d never get a mortgage again—and they do.
By rebuilding your credit, saving a deposit, and choosing the right mortgage option, you can absolutely get back on the property ladder. If you’re still unsure, we’re here to chat. Let’s find out what’s possible for you.
If you’re looking for “the best mortgage deals for people with past repossession”, let’s talk—we’re here to help.