Posted on 30 August 2018 by Amy

My home was previously repossessed, can I still apply for a mortgage?

Hi Amy,

Whether you were a joint party or sole owner of the property and it was repossessed you are responsible for any loss made by the lender on repossession.  You will also be responsible for any unpaid legal costs.  It is possible that your lender has claimed on an indemnity policy for any losses and in this instance the insurance company can pursue you for their loss.

With regards to obtaining a new mortgage or any other credit you will be committing fraud if you do not divulge the repossession and this could make it even harder, if not impossible for you to obtain any for or credit in the future.

However, if you have cleared the debt from the repossession – it will not stop you from getting a mortgage. Whilst credit records stay on file for a maximum of 6 years and I suspect if you have more recent credit history that will prevent you getting a mortgage, you will always have to declare the repossession on a mortgage application. 

Whether this then results in the application being declined depends on the individual lender.  When I worked for Halifax this question and whether you had ever been declared bankrupt formed part of the questions, but did not directly affect the lending decision and I saw a handful of cases go through to offer and completion.


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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