Mortgaging after Repossession

If you've had a home that has been repossessed in the past, you may think that you'll never be able to own a home again. Fortunately, this isn't always the case. There are loan products available for people who have gone through a repossession, although the terms may not be as favourable as they once were.

At Echo Finance, we recognise that people's circumstances can change and that sometimes, things happen that are beyond your control. We're here to help you get back on track and make your dream of owning a home a reality once again.

If you're interested in finding out more about how we've helped people in your situation, please get in touch with one of our specialist mortgage advisers today. We'll be happy to discuss your options and help you find a mortgage that meets your needs.

Can you get a mortgage after repossession?

It is undoubtedly more difficult to get a mortgage after your home has been repossessed, but it is not impossible. Depending on the situation, there are specialist mortgage lenders who may be willing to consider your application.

Many lenders, in particular high-street lenders, will not consider an application from people who have had a property repossessed. This is because they are deemed to be high-risk borrowers. However, there are some specialist lenders who will consider your application, although the terms may not be as favourable as they once were. These specialist lenders will consider:

The reasons for the repossession

Mortgage lenders will be interested in the reasons why your home was repossessed. If it was due to circumstances beyond your control, such as being the victim of fraud, redundancy or illness, then this will be viewed more favourably than if you simply stopped making mortgage repayments.

How long ago it occurred

If your home was repossessed more than three years ago, then you may find it easier to get a mortgage with competitive rates. However, if it happened more recently, then it will undoubtedly be harder to get a mortgage. In general, the longer it has been since the repossession occurred, the more favourable your chances will be of getting approved with the best rates.

Your current financial situation

When you apply for a mortgage after repossession, lenders will want to see that you have rebuilt your finances and are in a strong position to afford the repayments. They'll assess your income, outgoings and credit history to get an idea of your current financial situation.

What you've done since

Mortgage lenders will also want to see what you've done since your home was repossessed. If you've been able to maintain regular employment and have rented a property during this time, then this will stand you in good stead.

At Echo Finance, we have a team of specialist mortgage advisers who are experienced in helping people with all sorts of backgrounds and circumstances. We'll work with you to understand your situation and find a mortgage that meets your needs.

What if you've had more than one property repossessed?

If you've had more than one property repossessed, then this will make it even harder to get a mortgage. In general, most lenders will not consider an application from someone who has had two or more properties repossessed.

However, depending on the quality of your application and the reasons behind the repossessions, there are a few specialist lenders who may be willing to consider your application.

What happens in a mortgage repossession?

If you're struggling to keep up with your mortgage repayments, your lender may eventually take steps to repossess your home. This means that they'll sell your property in order to recoup the money that you owe them.

The process of repossession can be stressful and upsetting, so it's important to understand what's going on and what your options are.

If you're falling behind with missed mortgage payments and mortgage arrears, the first thing you should do is contact your mortgage lender and explain your situation. They may be willing to work with you to come up with a new repayment plan that is more affordable for you. Communicating early can drastically reduce the chances of your home being repossessed, and your mortgage lender has an obligation to help you keep your home if possible.

How many mortgage payments can you miss before repossession?

Your mortgage lender will typically begin the repossession process after 3 missed payments, but this can vary depending on your individual situation and lender.

It's important to remember that missing just one mortgage payment can negatively impact your credit score, making it harder to get approved for future loans or credit products. This is why it's so important to contact your lender as soon as you think you might miss a payment – they may be able to help you avoid this.

If you're facing repossession, it's important to seek professional advice as soon as possible. A specialist will be able to assess your situation and give you guidance on the best course of action. They may also be able to negotiate with your lender on your behalf to try and avoid repossession, which they see as a last resort.

What if I have other credit issues?

If you've had a home repossessed, you may also have other credit issues such as CCJs or defaults. Your credit rating is likely to have been affected, making it harder to get approved for future credit products, including a mortgage.

If this sounds like you, don't despair – there are still options available via specialist bad credit mortgage providers. A poor credit history doesn't have to mean the end of your homeownership dreams, but you may have to pay a higher interest rate to reflect the increased risk.

Bad credit mortgage lenders will consider people with all sorts of credit issues, including:

- CCJs

- Defaults

- Arrears

- Bankruptcy

- IVAs

Applying for a bad credit mortgage is often a more complex process than a standard mortgage, so it's important to seek professional advice. A specialist mortgage adviser will be able to assess your situation and guide you through the application process.

How to improve your chances of mortgage approval after repossession

If you're hoping to get approved for a mortgage after repossession, there are a few things you can do to improve your chances:

Rebuild your credit score

One of the best things you can do is focus on rebuilding your credit score. This will take time, but it will make it easier to get approved for a mortgage in the future. You can start by making all of your current loan repayments on time and keeping your credit card balances low.

Save up for a larger deposit

If you're able to, saving up for a larger deposit will improve your chances of mortgage approval. A larger deposit shows lenders that you're in a stronger position to afford the repayments, and it may also help you to get a lower interest rate.

Improve your employment situation

If you've been unemployed or underemployed, taking steps to improve your employment situation will also help. This may involve getting a new job or getting promoted at your current job. Lenders like to see stability in employment, so this will improve your chances of getting approved.

Making these changes will not happen overnight, but they will put you in a better position to get approved for a mortgage after repossession. Remember to stay patient and focus on rebuilding your finances, and you'll eventually be able to achieve your goal.

Work with an experienced mortgage broker

Your best chance of mortgage approval after repossession is by working with an experienced mortgage broker. Not only will they be able to identify the right lender, but they'll also be able to help with your application to give you the best chance of success.

A mortgage broker will have a good understanding of the repossession process and what lenders are looking for. They'll also be up-to-date on the latest changes in the industry, which can make a big difference when it comes to getting approved.

Get expert mortgage advice

At Echo Finance, our team of expert mortgage brokers have years of experience helping people get approved for a mortgage after repossession. We'll work with you to understand your situation and find the right lender for your needs.

Being in mortgage arrears, facing repossession or having a property repossessed in the past can all make it harder to get approved for a mortgage. But with our help, you can still achieve your homeownership goals. Our team will provide you with the support and guidance you need to get through it, and we'll do everything we can to help you get approved for a mortgage.

For more information about our services, or to speak to one of our mortgage brokers, give us a call today on 0800 0934 914 or fill in our online enquiry form.