Mortgage After Repossession FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
Can I get a mortgage after repossession?
Yes — repossession does not permanently bar you from getting a mortgage. The key variables are how long ago the repossession happened and how large a deposit you can provide. Most high-street lenders will decline within the first six years, but a market of specialist adverse credit lenders exists specifically for this situation. The terms will be less favourable than a standard mortgage — higher interest rates and larger deposit requirements — but rates and access improve significantly as the repossession ages and equity is built.
How long do I need to wait after repossession to get a mortgage?
There is no fixed waiting period. Some specialist lenders will consider an application immediately after repossession, though the deposit requirement is typically 35% or more and interest rates are significantly above standard. After three years, more lenders become available and deposit requirements often fall to around 25%. After six years the repossession drops off the credit file entirely and standard lenders become accessible, though some ask you to declare past repossessions on the application form regardless.
What deposit do I need after a repossession?
Deposit requirements vary by lender and recency of the repossession. Within the first year, a 35–40% deposit is commonly required. Between one and three years, most specialist lenders ask for 25–30%. Beyond three years, 15–20% may be sufficient with the right lender. After six years, standard high-street deposit levels (5–10%) may be achievable through mainstream lenders, depending on other credit history. A larger deposit strengthens any adverse credit application by reducing lender risk.
Will there be a shortfall debt after repossession and how does it affect a new mortgage?
When a lender repossesses and sells a property for less than the outstanding mortgage, the remaining balance is called a shortfall debt. This debt may be pursued separately and can appear on your credit file as a separate default or CCJ. Lenders consider both the repossession and any associated shortfall when assessing a new application. If the shortfall has been settled, this is viewed more favourably. Unsatisfied shortfall debts can restrict access to lending further, and some lenders will not proceed until the debt is resolved.
Do I have to declare a repossession if it has dropped off my credit file?
Many mortgage application forms include a question asking whether you have ever had a property repossessed, with no time limit. If this question is asked, it must be answered honestly regardless of whether the repossession is still on your credit file. Failing to disclose can amount to mortgage fraud and could result in the lender demanding full repayment if discovered later. Some lenders do not ask this question; a specialist broker can identify lenders whose criteria suit your specific history.
Can a specialist mortgage broker help after repossession?
A specialist broker with access to adverse credit lenders is likely to be essential in this situation. The mainstream market largely excludes recent repossessions, and the specialist lenders who consider them rarely deal directly with the public — they work through brokers. A broker can assess the full picture, identify lenders whose published criteria fit your timeline and deposit, and present the application in the most favourable light. Approaching the wrong lender directly can also generate a hard credit search that further damages your file.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. This article is general information only and does not constitute financial advice.
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