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Repossession Mortgages: Getting a Mortgage After Losing Your Home
Having a property repossessed is one of the most challenging credit events, but it doesn't permanently prevent you from owning a home. With specialist advice and time, you can rebuild and secure a mortgage again.
Content reviewed: January 2026
Repossession Mortgages at a Glance
- •Yes, mortgages are possible after repossession with specialist lenders
- •Expect 25-30% deposit immediately, reducing to 15-20% after 3 years
- •Voluntary surrender is often viewed more favourably than forced repossession
- •Any shortfall debt should ideally be settled before applying
- •Repossession is removed from your credit file after 6 years
Understanding Repossession and Future Mortgages
Repossession occurs when a lender takes back a property because mortgage payments weren't maintained. This can happen through court order (forced repossession) or voluntarily when you hand back the keys. Both remain on your credit file for 6 years but don't permanently prevent you from getting another mortgage.
Voluntary Surrender
Handing back the keys voluntarily can be viewed slightly more favourably by some lenders as it shows responsible action when circumstances changed.
Forced Repossession
When the lender takes legal action to repossess. Still possible to get a mortgage afterwards, though you may need more time or a larger deposit.
Post-Repossession Mortgage Timeline
0-1 Year After Repossession
Very limited options. Specialist lenders only. Expect 25-30% deposit requirement. Higher interest rates. Any shortfall debt should be addressed.
1-3 Years After
More specialist lenders available. 20-25% deposit typical. Rates improving. Demonstrating clean credit since repossession helps significantly.
3-6 Years After
Near-mainstream options available. 15-20% deposit may be sufficient. Competitive rates accessible with clean credit history since repossession.
6+ Years (Removed from Credit File)
Repossession removed from credit file. Full range of mainstream lenders available. Standard deposit requirements. Best rates available if credit rebuilt well.
What Lenders Consider
Time Since Repossession
The longer ago it happened, the better. Most lenders prefer at least 1-2 years, with significantly more options after 3 years.
Reason for Repossession
Circumstances matter. Job loss, illness, or relationship breakdown are often viewed more sympathetically than financial mismanagement.
Shortfall Status
If the property sale didn't cover the mortgage debt, lenders want to know if this shortfall has been settled or is being managed.
Credit Since Repossession
Clean credit history since the repossession demonstrates you've stabilised financially and are a lower risk for future lending.
Current Affordability
Strong, stable income and manageable outgoings reassure lenders that you can afford the mortgage now and in the future.
Frequently Asked Questions
Yes, you can get a mortgage after repossession. Some specialist lenders consider applications immediately, though most prefer 1-3 years to have passed. The longer since repossession, the better your options and rates become.
Specialist lenders may consider you from day one if you have a large deposit (30%+). After 1-2 years, more options open up with 20-25% deposit. After 3 years, you'll access better rates. After 6 years, repossession is removed from your credit file.
Immediately after: typically 25-30%. 1-3 years after: 20-25%. 3-6 years after: 15-20%. After 6 years (removed from file): standard deposit requirements apply, typically 10%+.
Many lenders view voluntary surrender more favourably as it shows you acted responsibly when you couldn't afford payments. However, both still appear on your credit file for 6 years and require specialist lending.
Yes. If there was a shortfall (the sale didn't cover the mortgage debt) and it remains unpaid, this can affect applications. Satisfied shortfalls are viewed more favourably. Some lenders require any shortfall to be settled before they'll lend.
Initially, yes. Specialist lenders charge higher rates to offset risk. As time passes and you rebuild credit, rates improve significantly. After 6 years with clean credit, you may access near-mainstream rates.
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