Previous house repossession and getting a new mortgage

Posted on 29 June 2017 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?

Hi 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.

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