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Mortgage and Previous Repossession

Posted on 29 June 2011 by karen brown


My house was repossessed 3 years ago when I lost my job.  Now I am working again is it possible to get a mortgage with a very bad credit history?

Karen

It is not impossible to get a mortgage if you have been previously repossessed, however you are likely to need a very large deposit.  You can expect to be asked to put down between 40-50% and for this you will get an interest rate of between 8 -9%, far higher than the standard mortgage rates currently available.

I recommend waiting until 6 years have passed, using the time to save a deposit and maintain a clean credit record.  After this time you will still have to declare the repossession but you should have a better chance of getting through the lenders credit score.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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