Mortgage After A Repossession
It’s absolutely possible to get a mortgage after a repossession. From over 100 lenders, at least 36 may consider your application depending on the date and situation. We’ve helped over 2,300 customers with previous repossessions, with 4 experts dedicated to bad credit mortgages. We guarantee to get your mortgage approved and find you the best deal. If we can’t and someone else does, we’ll give you £100!*
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Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Reviewed by: Luke Naylor
FTB and Bad Credit Specialist
Criteria Brain
https://mortgagebrain.com/products/criteria-brain/FCA Handbook
https://www.handbook.fca.org.uk/handbook/MCOB/13.pdfQuick Summary
When we speak to our customers who have previously been repossessed, it’s clearly an incredibly stressful life event, and for many, it has left them thinking they’ll never own a home again. Thankfully, despite what people may think (and perhaps have been told by some lenders or inexperienced brokers), it’s absolutely possible!
Right now, there’s approximately 36 lenders happy to lend if the repossession was over 6 years ago, 19 lenders if it was between 3 and 6 years ago, and even 7 lenders if it was within the last 3 years.
The deposit you’ll need and the rates you’ll get will largely depend on why it happened, when it was, and if there are any other credit issues at the time (and since).
Of course, getting approved is not straightforward, and you’ll need an advisor to access many lenders, as they can only lend via brokers – that’s why we’re here!
Access the whole market
There are basically two ways to get a mortgage: go directly to a lender yourself or use a broker.
If you’re going it alone, just bear in mind that the research required to find the lenders from over 100 in the market is huge, it’s likely you’ll have never heard of half of them!
We are big champions of advisors and also enable customers who want to find their own mortgage. You may have experienced that comparison tools are useless if you’ve had a repossession or any particular situation that means lenders may not consider you, which actually is a lot more people than not!
That’s why we built the OMA® Engine – a unique and leading system that powers our site’s data and our comparison tool.
The actual process
The process is simple, but hard to do!
First, understand exactly where you are. You’ll need to know the info lenders want to know so you can find the ones that best suit you. You’ll likely know the dates and details already, but it’s a good idea to get a copy of your credit files before you start (we like checkmyfile, as it has all 3 agencies on it and saves you some time signing up for all of them).
Then comes the hard bit—research. If you’re doing this alone, our tool is a good place to start.
OR…
You can have one of our team do all this for you. Our team arrange mortgages with these lenders every day, so they already know the market inside out and will have a shortlist of lenders ready before you even get on the phone!
What lenders care about
Lenders base their decision on the following:
As outlined in the section above, the time since your property was repossessed is one of the first things lenders will consider and can have a major impact on the outcome of your application.
If you racked up millions of pounds worth of debt or had an entire portfolio of buy-to-let properties repossessed, it will be looked at differently than a single, average-priced property. Getting a mortgage after either event is possible, but knowing the right lender to approach is key.
Bad credit mortgage lenders may consider the circumstances that led to the repossession. Factors out of your control, such as illness or redundancy, will be looked upon more favourably than general financial mismanagement.
This may seem odd, but most lenders are part of a larger banking group. With most lenders who’d ordinarily accept a historic repossession, the chances of them accepting an application from someone they’d repossessed a property are slim.
Some lenders will not accept applications from anyone still making debt payments related to their repossession, which can restrict your options. Those considering an application must factor these payments into their affordability calculations.
Lenders will look to see that you have entered payment arrangements with creditors and made good on your promises. This could be directly with creditors, via a debt management company, or through an IVA. If you have subsequently taken out other credit (such as a credit builder credit card), this must have been well-managed.
Lenders typically use income multiples to determine the maximum amount you can borrow. This tends to be between four and five times the annual income of all borrowers combined.
Note
It’s really useful to know that about 30% of lenders in the market will only lend via brokers because they are purely lenders, not banks (due to FCA regulation), and it’s these lenders who tend to be the most flexible when it comes to bad credit mortgages.
Get Started with a Mortgage Broker
Maximise your chance of approval with a broker who's a specialist in mortgages after a repossession
Repossession Lenders & Mortgage Rates
Lenders happy with repossessions
Despite what you may have been told, out of the 100+ lenders in the market, plenty will consider you after a repossession; it all depends on when it was and how much deposit you have.
Rates are more competitive than you might think – check them out here.
Bear in mind that the majority of the more flexible lenders when it comes to credit issues like this are broker-only lenders, which means you can’t apply to them directly. The list currently includes (but is not limited to) Cambridge BS, Loughborough BS, Kensington, Vida Home loans, and Bluestone.
Compare Repossession Mortgage Lenders
View personalised lenders, eligibility and rates from across the market using our industry-first comparison tool.
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Results updated daily from 90+ lenders
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Apply filters using official lender eligibility criteria
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Use a tracker to find out when eligible lenders and deals have changed
Repossession mortgage calculator
As far as we know, we have the best and only genuine calculator and comparison tool that will give you an idea of the lenders that can consider you, and the affordability, rates and repayments specifically for a mortgage after a repossession.
Get started with it here. Be sure to play around with the mortgage type, amounts, and term, and if you like, update the search to choose from hundreds of other filters.
This is powered by the OMA®Engine, a system we built ourselves because we were fed up with useless comparison tools that gave us no idea which deals we’d get.
If you want to establish repayments, affordability, stamp duty, and other factors, jump to our other calculators here (we have loads!).
Where most brokers go wrong
Where most brokers are nice and will “have a go” for you, they often lack the experience and knowledge to help, certainly not efficiently. We know how lenders work behind the scenes and ensure we match you with the right lender, at the right time, with the right approach.
The right expert will know:
- Which lenders will consider you after a repossession
- What deposit and credit profile you’ll need
- What rates and requirements to expect
We're so confident in our service, we guarantee it.
We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
This is why we’re here!
We work in departments to ensure you always work with someone who has specific, recent experience and success with customers like you—read more about our approach to channel experts here.
In short, our team dedicated to bad credit mortgages helps people who’ve experienced repossession regularly. Because they understand exactly how lenders assess these situations, they avoid the stress, wasted time, and unnecessary rejections that come from guessing.
Because we regularly process mortgage applications after repossession, we can help you move forward with confidence.
Rachel Jones – Back on the Property Ladder
Disclaimer: This is a real case study handled by Sheridan, with the real name redacted. This type of scenario is incredibly common and something we do a lot of.
Background: Rachel was repossessed after a separation, where, having moved out, her ex-partner was meant to be paying the mortgage, and unbeknownst to her, didn’t. She was always on top of her finances and has had clean credit since. In 2024, an inheritance gave her a deposit to buy again, so she went out house hunting.
The Problem: When offering on the property, the recommended estate agent broker turned her away, instructing her to wait six years before applying for a mortgage. She was left thinking she had no options. Thankfully, she searched online and found us!
How We Helped: Like I always do, we started with a chat. After about 3 minutes it was clear what had happened and I knew based on the repo date and her deposit, there was likely about 20 lenders for her. As part of the conversation we always establish eligibility factoring in everything else too, so her income and affordability, which actually narrowed her lenders to about 7 that would lend the money she needed. We went through rate preferences and agreed on the approach.
The outcome: That evening I received her documentation and we were able to get it approved in principle. She got her offer the next day and is now living in the home she thought she’d lost.
Meet Our Specialist Bad Credit Team
Experts in bad credit mortgages, including for people who have been repossessed in the past.
Graham Turner
Luke Naylor
Richard Davidson
Sheridan Repton
Key takeaways
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01
Getting a mortgage with a repossession is possible
It is possible to obtain a mortgage if you have had a property repossessed in the past, as there are a few specialist lenders considering these applications and many of them at surprisingly attractive and competitive rates. -
02
Make sure you have the right broker
The right mortgage broker can be the difference between approval and decline, particularly with bad credit mortgages, it's important to get the right advice. Remember that not all brokers are created equally! -
03
Understand your credit report
It's important to understand your credit report and see what lenders will consider before you get going. A good broker will help you analyse this, and then match you with the right lenders before applying, reducing the risk of damage to your credit file.
FAQs
There’s no “repossessions” section in your credit report, but lenders will see it where a mortgage or secured loan account is recorded as being in default. They can place an additional note on the record noting the repossession, which will appear on your credit reports for the next six years.
We can answer that in relation to mortgages – it’s likely to be “indefinitely”, in some form, with most lenders.
While it’ll appear on your credit file for 6 years, just remember lenders will usually request you declare it asking a question like “Have you ever had a repossession?”—it would typically be considered mortgage fraud if you say no here, so don’t do it, even if it was 20 years ago!
That said, loads of lenders are happy even if it was in the last 3 years, and as mentioned, there’s a lot who’ll be happy if it was over 6 years ago; they might want to know what happened at the time.
The additional caveat here is that if you are applying to the same lender you were repossessed by, they might never offer you a new mortgage (even if you fit the policy).
Technically, a lender could start proceedings after 3 consecutive months are missed, but it’s uncommon. Following the Government’s Mortgage Charter, lenders are now unable to force a repossession until you have been in arrears for at least 12 months.
They’ll typically want to demonstrate that they have done all they can to support you in resolving the situation, such as temporary breaks in payment (mortgage holiday) or a switch to interest-only payments, which would reduce monthly costs.
Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
After years of battling through adverse…
After years of battling through adverse credit, I can finally say we have just had our mortgage in principle accepted. Simon was an absolute breeze all the way through the process. Five stars simply isn’t enough!!! From one happy couple.
Nick Brittain
Absolute Fab: I got a mortgage as an ex-bankrupt !!!
As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe.
S Bakht
Just an honest review
The process was smooth and simple. My original plans were that our mortgage would be in my name only due to my husbands previous bankruptcy with repossession. I really do feel privileged in now living in our own home and I feel this wouldn’t have been possible without Online Mortgage Advisors.
Claire Williams