Post Repossession Information

If you have your home repossessed and you do not intend to try and regain possession, it is important to realise that you are still responsible for the mortgage payments, legal fees, estate agents, costs to maintan your home and any clearance costs as a result of leaving the house in a mess when you hand back possession or if you are evicted.

To minimise costs regardless of whether there is any equity left over, it is highly recommended that you leave the home in the best condition possible. This will maximise the amount it can be sold for and will either raise you as much remaining equity as possible or limit your liability.

If this leaves negative equity you will usually remain responsible for any shortfall. To give you the best chance of being able to gain a mortgage in the future it is advisable to come to an arrangement with the lender to clear the outstanding balance over a timescale acceptable to both parties. It then will be possible to get a new mortgage in as little as one years time, if not sooner if there was not outstanding liability and a healthy deposit is available for your new home.

Your name will be added to the repossession register held by The Coundil of Mortgage Lenders for up to 7 years and it will appear on your credit file. If there was a shortfall and you pay it back this will appear on the repossession register and will increase your chances of gaining a mortgage or at least will imporve the competitiveness of the mortgage.

It is usually a good idea to rent for at least a year and if you make all of your rental payments on time and if there is no outstanding mortgage balance owed on the repossessed home you will be able to get a reasonably competitive mortgage as long as there is no other form of adverse credit.

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