For individuals who have experienced the challenging process of house repossession, the dream of owning a home might seem distant. The aftermath of repossession can be emotionally and financially overwhelming, leaving you wondering if it’s possible to secure a mortgage and buy a house again. However, there is still hope after repossession to buy another house.
What Happens During a House Repossession?
House repossession is a distressing experience that occurs when you’re unable to meet mortgage payments, leading the lender to reclaim the property. This process often involves legal proceedings, auctions, and potential financial loss for the homeowner. Beyond the immediate impact on housing, repossession can have far-reaching effects on your credit score and financial well-being. While repossession can be emotionally taxing, knowing there are paths to rebuilding your financial standing and achieving homeownership once again is essential.
What factors influence my ability to get a mortgage after repossession?
Rebuilding your financial health and qualifying for a mortgage after repossession involves several critical factors that lenders consider:
1. When Your Home Was Repossessed
The timeline since your repossession plays a significant role in mortgage eligibility. If your home was repossessed within the last few years, it might be more challenging to secure a mortgage. However, time can work in your favour, as lenders may become more willing to consider your application as it moves further into the past.
| When was your home repossessed? | Deposit needed | Chance of finding a mortgage |
| <1 year | n/a | Almost Impossible |
| 1-2 years | ~30-35% | Very low |
| 2-3 years | ~30-35% | Low |
| 3-4 years | ~15-20% | Possible |
| 4-5 years | ~10% | Possible |
| 5-6 years | <10% | Possible |
| >6 years | 5% | Possible |
2. Your Repossession Debt Amount
The extent of your repossession debt significantly impacts your eligibility. Larger debts, multiple properties, or a complex repossession scenario can pose challenges in securing a mortgage. However, it’s essential to note that our experienced mortgage brokers are skilled at approaching lenders who are more flexible in accommodating such situations.
3. Why Your Home Was Repossessed
Lenders understand that life events, unexpected challenges, and circumstances beyond your control can lead to financial difficulties. If your repossession resulted from factors such as fraud or external economic factors, some lenders may be more understanding of your situation.
4. Who Repossessed Your House
Applying for a mortgage with a lender affiliated with the one who repossessed your house may lead to rejection. Research lender options strategically to avoid such hurdles.
5. If You Still Owe Money
Repossession doesn’t always fully eliminate your debt. If the sale of the repossessed property didn’t cover the full mortgage balance, you might have a legacy payment obligation. This can impact your mortgage eligibility.
How New Dawn Residential can help
At New Dawn Residential, we specialise in offering a fresh start to individuals that are targets of repossession. Our compassionate approach takes into account your unique circumstances and finds bespoke ways to sell your property to help you overcome repossessions and all consequences that follow. New Dawn Residential services help you make a fresh start by providing support, guidance, and expertise every step of the way. So, don’t hesitate and contact us today.