"We're here to help, even if you've been turned down elsewhere"
Your reason for being repossessedThere are many reasons why your previous home may have been repossessed, such as: • Falling into mortgage arrears – This could be due to you becoming ill, or being made redundant etc. • Taking out a secured loan that you couldn’t pay back • Going through bankruptcy • Losing your home due to fraud • Other legal issues If you’ve previously had a property repossessed, then most lenders will want to know the reason why. This will help them to decide whether they want to lend again. There are certain situations where they are more likely to be sympathetic, and you’ll need to show that you’re now capable of paying a mortgage again. For example, if you lost your home due to being made redundant, they’ll want to know that you’re now in stable employment.
Give us a call, we speak in plain English, we do not make promises that we cannot keep, and if we cannot help you, we do not get paid, so as you will appreciate it is not in our interests or yours to waste your time or ours. But if we can see a way of helping you we will fight all the way to make it happen, and we just hate to say no. Call us now on 03452 605506 or 07867 794837 we are here to help YOU.
Time since the repossession
As with any type of adverse credit, the effects of a previous repossession will lessen over time, as long as you have kept up to date with your creditors since then. Getting a mortgage after repossession is most difficult in the three years after the repossession date, and there’s only a small pool of lenders available in these circumstances who would offer a mortgage with a high interest rate.
If your repossession was less than three years ago, you’ll also need a big deposit due to the higher risk lenders will take when they offer you a mortgage. Some of them will ask for a deposit of up to 35%.
The good news is that your chances of acceptance go up with each passing year, and the longer you wait to apply for a mortgage after repossession, the lower deposit you’ll need. After three to four years, you may be able to get a mortgage with a 15% deposit, and if the repossession was over six years ago, then you may find better deals. A Mortgage 4 You will be able to give you a realistic view of whether you’ll be accepted, so you don’t waste your time applying and getting turned down.
High value or multiple repossessions
We are sometimes contacted by people who have had high value or multiple repossessions and are looking for a mortgage. While the amount of the repossession shouldn’t affect your overall likelihood of getting another mortgage, it is something that lenders will ask, and repossessions that come up to amounts in the millions can be off-putting. As will a history of taking out lots of mortgages and having multiple properties repossessed. However, each case is taken into account individually, and you may find a lender who is sympathetic to your history. We can put you in touch with lenders who have, in the past, accepted people in a similar position.
Bad credit since a repossession
We understand that it can be hard to get back on your feet after a repossession. However, lenders will want to know that you’ve recovered financially, and are now living within your means. They’ll want to see that you’ve made regular repayments to your other creditors, and that your credit score is improving over time. Many people who have had a home repossessed will also have bankruptcies, IVAs, defaults, and CCJs on their credit file, as they will have fallen into a difficult financial situation at the time. While applying for a bad credit mortgage is difficult, it isn’t necessarily impossible, but it’s essential to use a skilled broker for the best chance of success.
Another issue we sometimes come across is clients who are currently paying off legacy payments for their previous property. If a property is repossessed, and the money made from the sale doesn’t cover what’s owed, you might be making payments on the shortfall. Getting a mortgage when you have legacy payments can be very difficult. You’ll usually need a large deposit, and will need to prove that your income will cover the new mortgage payments as well as the old legacy payments.
How much can I borrow?
You may be wondering how much of a mortgage you can get after a repossession, and in the first few years, lenders are usually very cautious. For the first three years after repossession, the maximum amount a lender will offer will usually be three times your annual income. Again, the longer you wait to apply for a mortgage after repossession, the more favourably your application will be looked at. All mortgages now are based on affordability, this will mean that your current lifestyle will have an impact on what you can borrow. However low loan to value, means less risk for the lender, so the bigger deposit that you have the more flexible the lenders maybe.May 2016 Bad Credit Mortgage News
Secured Loans or Re-Mortgage?
The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Using a mortgage broker after repossession
Applying for a mortgage is never easy, and when you factor in a previous issue such as a repossession, then it makes it that much harder. That’s why so many clients with previous repossessions contact A Mortgage 4 You for advice. Because we are independent brokers, we have access to a much wider range of mortgages than you’ll find on a comparison tool or at your local bank, and many of them are designed for people with bad credit or previous financial problems. Some clients who’ve applied independently, perhaps finding a mortgage online, have often been accepted in principle, but down the line the repossession has come to light, and the lender has pulled out. This can end up costing you a lot of money in fees, and is a huge disappointment and waste of your time. It’s better to use a broker who will be able to find mortgage products to suit your needs, and who can advise on your chances of being accepted. If you’ve previously had a property repossessed and are now looking for a mortgage, give A Mortgage 4 You a call today to find out how we can help. Give the team a call on 03452 605506 / 07867 794837