Adverse Credit
Getting a Mortgage After a Repossession
A repossession is the credit problem lenders treat most seriously, because it is the same type of debt you are applying for. A small number of specialist lenders will consider you, usually several years later, with a large deposit and a clean record since.
Written and reviewed by Davi Thakar, CeMAP qualified mortgage and protection adviser Updated
Yes, you can get a mortgage after a repossession, but it is the hardest credit problem to get past. A small number of specialist lenders will consider you, usually several years later, with a large deposit and a clean record since.
A repossession stays on your credit file for six years. Because it shows a previous mortgage was not repaid, lenders view it as the most serious credit problem. Many mainstream lenders will not consider anyone with a repossession on file, and some ask if you have ever had a property repossessed.
It is not impossible, though. Your options grow the longer ago it was, and faster if any shortfall debt has been dealt with.
This guide covers timing, shortfall debts, voluntary repossession and what lenders check. For the wider picture, see our bad credit mortgage guide.
Can you get a mortgage after a repossession?
Yes, but only with specialist lenders while it is on your file. A few will look after three years, but most of the lenders we checked want six, along with a deposit of 25% or more and no new problems since. Lenders also want to know whether any shortfall is still owed. Once the repossession drops off after six years, many more lenders will consider you.
How long after a repossession?
| Time since repossession | Typical options |
|---|---|
| Less than three years | Very limited. Usually a very large deposit, if available at all |
| Three to six years | A few specialist lenders, often wanting 25% or more deposit |
| After six years | It drops off your file. Many more lenders, though some still ask and a few never accept it |
What is a shortfall debt?
If your home sold for less than you owed, the difference is a shortfall debt. The lender can usually pursue it for up to six years for interest and up to 12 years for the capital in England and Wales.
Lenders will want to know whether a shortfall is still outstanding. Agreeing a repayment plan or settlement, and getting it in writing, strengthens a future application. If you are not sure whether you owe anything, write to the old lender and ask for a statement.
Is voluntary repossession treated differently?
Handing back the keys, sometimes called voluntary repossession, is still recorded as a repossession by most lenders. It may be viewed a little more kindly if it is clear you cooperated, but it is not treated as a clean exit. MoneyHelper also warns that you may still owe the balance if the sale does not cover the mortgage.
What do lenders look at?
| Factor | What lenders want to see |
|---|---|
| Time since | The date of the repossession and how long ago it was |
| Shortfall | Settled, or a written plan being paid on time |
| Record since | No new missed payments, defaults or CCJs |
| Income | Stable income and a sustainable budget |
| Deposit | Large, often 25% or more while it is on your file |
| Disclosure | A truthful answer to “have you ever had a property repossessed?” |
| Rent history | Rent paid on time since, ideally with proof |
How long after a repossession do lenders want? (criteria checked October 2026)
We checked the criteria these lenders publish for brokers on 16 and 17 October 2026. Criteria change often, every lender also credit scores, and meeting a rule does not guarantee approval. Use this as a guide to where you might fit, not a promise.
| Lender (source) | What they publish |
|---|---|
| Virgin Money (high street) | Never had a property repossessed |
| TSB (high street) | Not within the last 6 years |
| Leeds (building society) | Not unless more than 6 years ago |
| Accord (building society) | Not within the last 6 years |
| Precise (specialist) | Forced or voluntary repossession not accepted |
| Pepper Money (specialist) | None in the last 6 years |
| Vida Homeloans (specialist) | 6 years or more on main products, 3 years or more on one range |
What this tells you: repossession is one of the hardest problems to place. Most lenders want 6 years, some never accept it, and only a few specialists look sooner.
Rules are summarised in plain English from each lender’s own published criteria. Lenders change them regularly, so we check again before recommending anything.
Which situations do lenders see most?
These are illustrative situations, not Option Finance client outcomes.
Recent with shortfall owing
The repossession was last year and the old lender is still chasing a shortfall. Almost no lender will look at it yet.
Deal with the shortfall firstFour years on, settled
The shortfall was agreed and paid, rent has been on time and income is stable. Some specialist lenders may consider it.
Evidence of the settlement mattersKeys handed back
You gave the property back to the lender. Most lenders still record it as a repossession.
Show you cooperatedAfter a business failure
The home went because a business failed, sometimes alongside bankruptcy. Lenders weigh both problems together.
Explain the cause and what changedIllustration only
A couple’s home was repossessed five years ago after a business failure. They agreed and paid off the shortfall, both now have stable jobs and no missed payments since. A specialist lender might consider them with a 25% deposit. If the repossession was last year with a shortfall still unpaid, they would usually be advised to wait.
How do you rebuild after a repossession?
- Deal with any shortfall debt. Agree terms in writing.
- Check your credit files for accuracy with all three agencies.
- Keep every account up to date. One new missed payment can undo years of progress.
- Register on the electoral roll.
- Show a strong rent payment history. Keep bank statements that prove it.
- Save as large a deposit as you can. Our first-time buyer deposit guide covers how lenders check where the money came from.
Behind on your mortgage now?
If you are reading this because you are falling behind, speak to your lender now. MoneyHelper explains the help available if you cannot pay your mortgage, including term extensions and temporary interest-only. It also says lenders should treat court action as a last resort. Free debt advice is available through MoneyHelper’s help if you are struggling with debt. Acting early can keep a repossession off your file altogether.
What mistakes should you avoid?
- Ignoring letters about a shortfall. It can turn into a CCJ, which adds a second problem.
- Leaving the repossession off a form because it is older than six years. If the form asks, answer.
- Applying to a mainstream lender while the repossession is on file. A decline adds a search and wastes time.
- Using family money as a deposit without a gifted deposit letter. Lenders will ask.
How does repossession combine with other problems?
A repossession often comes with missed payments, defaults or bankruptcy. Lenders look at all of them together, so the full picture matters more than any single date.
Frequently asked questions
Can I get a mortgage after a repossession?
Yes, with a small number of specialist lenders, usually several years later, with a large deposit and a clean record since.
How long does a repossession stay on my credit file?
Six years. Some lenders still ask whether you have ever had a property repossessed.
Is voluntary repossession better than repossession?
Most lenders still treat it as a repossession, although cooperating with your lender may be viewed slightly more kindly.
What is a shortfall debt?
The amount still owed if your home sold for less than your mortgage. Settling or agreeing a plan for it helps future applications.
How much deposit do I need after a repossession?
Often 25% or more in the years while it is on your file.
Can the old lender still chase me for the shortfall?
Usually for up to six years for interest and up to 12 years for the capital in England and Wales. Get advice if you are contacted.
Does renting since the repossession help?
It can. A clean record of rent paid on time shows you can manage a regular housing payment, and some lenders take it into account.
Speak to Option Finance about a mortgage after repossession
Tell us when it happened and where the shortfall stands. We will tell you straight whether lenders would consider you now, or what to work towards first.
Book a free initial consultation using the enquiry form below. See our adverse credit mortgage advice and our guide to mortgages with a CCJ.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Talk through your mortgage options
Tell us about your plans and circumstances. Your initial consultation is free.
Written and reviewed by Davi Thakar
Director & Senior Mortgage Broker
CeMAP Qualified Mortgage and Protection Adviser
Davi founded Option Finance with a vision to deliver transparent mortgage advice from a wide panel of lenders. With over 10 years in financial services, he specialises in complex cases including adverse credit, self-employed borrowers with limited trading history, and large buy-to-let portfolios. He works directly on complex cases and explains each option clearly.
Meet Davi Thakar
