Mortgage After Repossession

Looking for a new mortgage but worried about a previous repossession? Learn how to get back on the housing ladder right here.

Firstly, have you had a property repossessed in the last 5 years?

Home Bad Credit Mortgages Mortgage After Repossession
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Jon Nixon

Reviewer: Jon Nixon

Director of Distribution

Updated: March 15, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

March 15, 2024

We’ll explain how having a repossession against your name affects your creditworthiness, why it’s vital you speak to a specialist bad credit mortgage broker before applying for and how they can increase your chances of still securing the mortgage you need.

Can you get a mortgage after a repossession?

Yes, it’s possible. A repossession will limit your choice of lenders and make getting another mortgage quite difficult. But it certainly doesn’t mean you have to give up on your ambitions of home ownership altogether.

Why is it harder to get a mortgage after being repossessed?

It can be more difficult because a repossession is considered one of the most severe forms of bad credit and some mortgage providers will consider you too much of a risk to lend to. What’s more, the deposit requirements and interest rates can be higher for mortgages where the borrower has a repossession on their credit files.

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How to get a mortgage with this type of bad credit

Since repossessions are considered one of the most severe forms of bad credit, your best chance of mortgage approval is through a specialist bad credit mortgage broker.

Make an enquiry with us and we will match you with a broker with the right level of knowledge to deal with your situation who can advise on the following:

  • Whether you are eligible: Whether you are eligible: You can check the requirements for yourself in our eligibility criteria section, but a broker can provide bespoke advice about which deals you will qualify for.
  • How to download and optimise your credit reports: You can do this by activating a free credit report trial, and with the help of your advisor, have outdated information removed and explore ways to build up credit quickly.
  • Finding the ideal mortgage lender: This is vital for someone with this form of bad credit, and the bad credit mortgage brokers we work with have deep working relationships with the lenders who are the best fit for you.

How long should you wait before applying?

If the issue  occurred within the last twelve months then your chances of getting a mortgage are virtually nil unless there’s a significant change in your financial situation, such as an unexpected inheritance that allows you to put down a large deposit.

Even then, you will need to apply to a specialist lender and will probably pay a high rate of interest.

The table below will give you an idea of how much your chances of mortgage approval will increase based on how long ago your repossession was:

Age of Repossession Approximate Deposit Amount Needed Chances of Mortgage Approval
Less than a year N/A Extremely unlikely
1-2 years 35-40% Unlikely
2-3 years 30-25% Unlikely
3-4 years 15-10% Possible
4-5 years 10% Likely
5-6 years 5-10% Likely
More than 6 years 5-10% Extremely likely

Please note that the level of likelihood assumes there are no other risk factors involved besides a repossession. Also keep in mind that the right mortgage broker could help you find a solution even under ‘unlikely’ circumstances.

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How mortgage lenders assess repossessed applicants

In addition to standard eligibility and affordability criteria, each provider has their guidelines when it comes to applicants with previous repossessions. The first thing to note is that blindly applying based on hope will almost certainly lead to rejection and further harm your credit file.

A lender will want to understand, and then base their decision on the following:

How long ago was your property repossessed?

As outlined in the section above, the timescale since your property was repossessed is one of the first things lenders will look at and can have a major impact on the outcome of your application.

What did your repossession debt amount to?

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 to a single, average-priced property. It’s possible to get a mortgage after either event but knowing the right lender to approach is key.

Why was your property repossessed?

Bad credit mortgage lenders may take into account 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.

Which lender repossessed your home?

This may seem like an odd question, 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 who they’d repossessed a property from are slim.

Is there still debt outstanding?

Some lenders will not accept applications from anyone still making debt payments in relation to their repossession, so this can restrict your options. Those that will consider an application will need to factor these payments into their affordability calculations.

How have you conducted your credit since?

Lenders will be looking to see that you have entered payment arrangements with creditors and made good on your promises. This could be direct 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.

Affordability and income multiples.

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.

Which lenders will consider an application?

Take a look at our rates table below to get an idea of which lenders offer bad credit mortgages and what kind of deals they offer.

Lender Product Details
Frosted Rates Image

Looking for more rates and deals?

We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market.

Last updated December 2023

The rates quoted above were correct at the time of writing and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time. 

What to do if you’re worried your home might be repossessed

If you’re struggling to pay your current mortgage, repossession can sometimes appear an inevitable outcome. But that doesn’t need to be the case.

Make an enquiry with us so we can match you with a specialist broker who deals with bad credit mortgages. They will assess your situation and advise you on the best way forward.

It might be that extending your term, either with your existing lender or by remortgaging to a new provider, will allow you to keep your home. Alternatively, you may be able to apply for a payment holiday to give yourself time to get your finances in order.

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Claire Williams

Why Use Online Mortgage Advisor?

Repossession can be soul destroying. But it’s always important to remember that you’re not the only one in that situation. And this is evidenced by the fact there are lenders who specialise in helping people in your position keep their current home or get back in the game.

The issue most borrowers face is not knowing where to find the right lender. Each provider has their own unique criteria, and it’s unrealistic to expect borrowers to be aware of the nuances. This is where we can help!

We offer a broker matching service that will assess your current position and then pair you up with the broker most suited to you based on their previous experience and industry network. Start your journey back to home ownership by calling 0808 189 2301 or enquire online.


It’s important to use an expert who can package and present your application in the right way – you’d be surprised how many customers come to us having been declined, for one of the experts to get it through with the very same lender!


A repossession has a significant effect on your ability to obtain any credit. Not all mortgage lenders use a credit scoring system, but all will want to look at your credit history as part of the application process. The information above can help you repair your credit file, but sometimes you just have to wait it out.

If you’re had a property repossessed it will appear on your credit reports for the next six years. During this time, you will likely find it more difficult to secure a mortgage or other types of finance.

Most mortgage lenders will not begin repossession action until you have missed a minimum of three months’ mortgage payments, and even then, it will be a last resort, after other solutions have been discussed with you.

Measures introduced under the government’s Mortgage Charter mean that lenders cannot activate repossession proceedings until you have been in arrears for at least a year.

Key takeaways

  • 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

    A broker can help you get it done right

    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
  • 03

    Understand your credit report

    It's important to understand your credit report and see what types of bad credit appear as different lenders will accept different types of bad credit and depending on what type of bad credit you have, this will determine the route your expert broker will take.
  • 04

    Find the right mortgage lender

    Choosing the right mortgage lender is vital and with a repossession the number of approachable lenders is less, so finding that specific lender is key. The best way to improve your prospects is to speak to an expert. The brokers we work with are specialists in finding people with bad credit a mortgage right for them.

Maximise your chance of approval with a broker who's a specialist in mortgages after a repossession

Get Started Phone Icon 0808 189 2301

About the author

Pete, 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 found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with 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!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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