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The date of your repossession is important, as the more recent it is, the more difficult it will be for you to get your application declined.  
 
If you were repossessed within the last three years, then it may be a little trickier to get a mortgage. If it’s over three years ago, then your chances improve if you’re looking for a mortgage up to 85% loan-to-value.  

In short, the older the repossession, the more chance you have of getting the mortgage that you desire.  
 

Will my mortgage rate be more expensive after repossession?

  

Once again, it all falls to when you were repossessed. The more recent, the higher your rate will be, and if it was within the last three years, then the rate will probably be far higher than normal – as you will be viewed as a higher risk by the lender. 

Lenders will also want to know the size of the repossession, in terms of whether the repo was for multiple mortgages. The higher the cost of the repossession, the more difficult it will be to get your application accepted. 

Does it matter which lender carried out the repossession?  

The lender that you defaulted with and who repossessed your property will have a huge influence on who will approve your mortgage application.  
 
Most lenders are part of groups that are related or owned by the same company which means that, if you’re declined by one lender in the group, you will probably be declined in the others in that group.  

This is why it’s important for an expert to take care of things for you as it takes specialist market knowledge to understand the right lenders to approach. 

Will I need to show your credit conduct since I was repossessed? 

Lenders will want to see evidence of your recovery as they will want to lend to people that may have fallen on hard times but have recovered and are unlikely to default again.  
 
If you had other credit issues showing on your file at the time of your repossession but have continued to improve since then, you will stand in a better position on your mortgage application than if you were to have had more trouble since then.  

When you apply for a mortgage after a repossession, you will have to go through the standard procedure of application such as meeting affordability criteria and other eligibility areas. 

As you will have a repossession recorded against your name, you will likely face more scrutiny than usual to counteract the potential risk you pose to the lender.  

If your repossession was within the last three years, then you may be able to borrow a maximum of around 3x your annual income. If it was over three years ago, then you’ll get around 4x and if it was over six years ago then you could even get to borrow a maximum of around 5x your annual income. 

For further information on getting a mortgage after you have had a repossession, contact one of our expert advisers and they will be able to talk you through the next steps.