Yes, a mortgage after repossession is possible, though your choice of lenders will be more limited than for a standard applicant. A repossession is treated as a serious adverse credit event, but your eligibility improves as time passes. Most high-street lenders will decline applications in the first few years, and you will need to work with a specialist broker who has access to the adverse credit market.
This guide explains when you can apply, what deposit and rates to expect, what lenders will look at, and the steps you can take right now to improve your position.
Table of Contents
How Long After a Repossession Can You Get a Mortgage?
Time is the single biggest factor. The further you are from the repossession date, the more lenders become available, the lower your required deposit, and the better the rates you will be offered.
Time Since Repossession | Approval Likelihood | Deposit Required | Typical Interest Rate |
Under 12 months | Very unlikely | Not applicable | Not applicable |
1 to 3 years | Extremely difficult; specialist lenders only | 30% to 50% | Often above 6% |
3 to 6 years | Possible; options expand significantly | 10% to 20% | More competitive, but still above standard rates |
6 years or more | Good; repossession drops off your credit file | 5% to 10% | Mainstream rates available if recent conduct is clean |
A repossession stays on your credit report for six years from the date it was registered. Once it drops off, you are no longer legally required to disclose it on your credit file, but you must still declare it honestly if a mortgage application asks whether you have ever had a property repossessed.
Where Do You Stand? Work Out Your Next Steps
The three questions below are the same ones a specialist adviser will ask you at the start of any conversation. Answering them honestly will help you understand which options are realistic for you right now.
1. How long ago did the repossession occur?
Use the timeline table above to find your band. If you are currently within the 1-to-3-year window, it is worth focusing on rebuilding your credit and saving a larger deposit rather than applying immediately and facing likely rejections. Each rejection can itself affect your credit score.
2. Do you still have an outstanding shortfall with your previous lender?
A mortgage shortfall arises when the lender sells your repossessed property and the sale price does not cover the full amount you owed. The outstanding balance becomes a separate debt. An unresolved shortfall will heavily restrict your options, as many specialist lenders will not consider your application while it remains outstanding. If you are unsure whether a shortfall exists, contact your previous lender in writing to confirm. Organisations such as StepChange and National Debtline can help you negotiate a settlement if the debt is still active. You can also explore remortgage for debt consolidation as a longer-term strategy once you are eligible.
3. What size deposit do you currently have?
Your deposit determines which lenders will consider you. Within the first three years after repossession, you will generally need at least 30% of the property’s value. After three years, this drops to around 10% to 20%. After six years, a standard 5% to 10% deposit may be sufficient if the rest of your application is strong. If your current savings fall short, this is one of the most productive areas to focus on in the interim.
What Factors Do Lenders Look at?
Specialist lenders do not simply look at whether you have a repossession on your record. They assess the full picture.
The reason for the repossession
Lenders take a more favourable view when a repossession resulted from circumstances outside your control, i.e., a serious illness, redundancy, or relationship breakdown, than when it resulted from persistent financial overextension. Being able to provide evidence of the reason (medical letters, redundancy paperwork) can help your application.
Any remaining shortfall debt
As noted above, an unresolved shortfall is a significant barrier. Settling it before you apply, even at a reduced agreed amount, will open more doors.
Your previous lender’s banking group
Avoid applying to any lender that is part of the same banking group as your previous mortgage provider. Lenders within the same group share internal records, and an application from a borrower who previously had a property repossessed with an affiliated brand will typically be declined automatically. A specialist broker will know which lenders to steer clear of.
Your recent credit conduct
Lenders will scrutinise your bank statements and credit file for at least the previous 12 to 24 months. Any new missed payments, county court judgements (CCJs), or defaults in that period will make an already difficult application significantly harder. A clean recent record, even a relatively short one, carries considerable weight with adverse credit lenders.
If you are self-employed, lenders will also want to see stable, provable income. Read our separate guide on remortgaging when you are self-employed for more detail on what to prepare.
Which Lenders Will Consider a Mortgage After Repossession?
Most high-street banks, including the major names you will recognise from the comparison sites, will decline an application if there is a repossession on your credit file, particularly within the first six years. This is not necessarily a reflection of your current financial situation; it is simply outside their standard lending criteria.
Specialist adverse credit lenders, by contrast, assess each case individually. These lenders do not typically appear on price comparison websites and are generally only accessible through an independent, regulated mortgage adviser who works in the bad credit market.
A good specialist broker will know which lenders are currently accepting applications at your particular time since repossession, at your deposit level, and with your credit profile. This saves you from making multiple applications yourself, each of which leaves a footprint on your credit file.
How to Improve Your Chances of Getting a Mortgage After Repossession
There are concrete steps you can take now, regardless of where you currently sit in the timeline.
- Get your credit reports. Request your full reports from the three main UK credit reference agencies, namely, Experian, Equifax, and TransUnion. Check that the repossession is accurately recorded and note the date it was registered. This tells you exactly when the six-year clock runs out.
- Resolve any outstanding shortfall. Contact your previous lender or a debt charity such as StepChange or National Debtline to understand whether a shortfall exists and what your options are for settling it. Lenders will check.
- Keep everything else clean. Pay every bill (credit cards, loans, utilities, council tax, mobile phone contracts) on time, every month. Lenders pay close attention to the 12 to 24 months before your application. A clean recent record is one of the strongest signals you can send.
- Build your deposit. A larger deposit reduces the lender’s risk and expands the number of lenders willing to consider you. If you have equity in other assets, a remortgage to release equity may be worth exploring once you are eligible.
- Demonstrate stable income. Be prepared to evidence your employment history and income clearly. Lenders will scrutinise affordability carefully on any adverse credit application.
- Use a specialist broker. Many adverse credit mortgage products are not advertised publicly. A regulated independent broker who deals with bad credit cases will know which lenders are accepting applications, what documentation they require, and how to present your case most effectively.
What to Expect When You Apply
You must fully disclose the repossession
Every mortgage application in the UK asks whether you have previously had a property repossessed. You must answer honestly, even after the repossession has dropped off your credit file at the six-year mark. Failing to declare it is classed as mortgage fraud and will result in your application being rejected, and potentially in more serious consequences.
Affordability checks will be thorough
Specialist lenders will look closely at your income and outgoings to satisfy themselves that you can sustain the new repayments. Expect to provide bank statements, payslips or accounts, and a clear explanation of the previous repossession. The process is more involved than a standard application, but it is workable with the right preparation.
It may take longer
Adverse credit cases typically take more time to process than standard applications. Build in extra lead time if you are working towards a specific completion date. Our guide to what is remortgaging and how does it work gives a useful overview of the general process.
How Speedy Remortgage Can Help
Our platform lets you compare remortgage deals from lenders across the UK, including those who work with borrowers who have adverse credit histories. Once you have found a deal that fits your circumstances, our team of specialists is on hand to provide tailored support.
We take the time to understand your specific financial situation and long-term goals, helping you find the most suitable option available to you at this point in time. If you are unsure where to start or have questions about your situation, do not hesitate to get in touch. We are here to simplify the process and help you move forward.
FAQs
Yes, it is possible to get a mortgage after a repossession, although your options will be more restricted than for a standard applicant. High-street lenders will typically decline applications where a repossession appears on the credit file, particularly within the first six years. Specialist adverse credit lenders, usually accessible through a regulated broker, will consider applications from borrowers with a repossession on their record. The further you are from the repossession date, the greater your choice of lenders and the more competitive the rates available to you.
A repossession stays on your UK credit file for six years from the date it was registered. Once this period has passed, it is removed from your credit report automatically. However, you are still required to declare the repossession honestly on any mortgage application that asks about it, even after it has dropped off your credit file. Failing to do so is considered mortgage fraud.
This depends on how long ago the repossession occurred. Within the first three years, most specialist lenders will require a deposit of between 30% and 50% of the property’s value. Between three and six years, this typically falls to 10% to 20%. After six years, when the repossession drops off your credit file, a standard deposit of 5% to 10% may be sufficient, provided the rest of your recent financial history is clean.
In most cases, yes. Adverse credit mortgage products are not widely advertised and are generally not available directly from lenders or through standard comparison websites. A regulated, independent mortgage adviser who specialises in bad credit cases will know which lenders are currently accepting applications for borrowers with a repossession, what documentation they require, and how best to present your circumstances.
A mortgage shortfall occurs when the sale of your repossessed property did not raise enough money to clear the full mortgage balance. The remaining debt belongs to you and does not disappear with the property. An outstanding shortfall will significantly limit your mortgage options, as many lenders, including specialist adverse credit lenders, will not consider your application while it remains unresolved. If you are unsure whether a shortfall exists or how much it is, contact your previous lender to confirm. Debt charities such as StepChange and National Debtline can help you explore your options for settling it.
About the Author:
Matt is a top contributor at Speedy Remortgage and has worked in the financial services industry for over a decade now. Through his expertise on mortgage and remortgage has helped hundreds of customers to achieve their property goals.