What matters most is how long ago it happened, what your credit record has looked like since, and whether there is any outstanding shortfall debt from the repossessed property. Time since a repossession tends to matter a great deal to lenders, so this is generally a longer road back than most other credit issues.
This page covers what a past repossession may still show, how a shortfall debt can arise and continue to affect your credit file separately, and where to get free advice if you are unsure what is still outstanding. If your current concern is arrears you have now, see currently in arrears instead.
On this page
This page covers
- Credit issue
- Mortgage arrearsUsually stays on your credit file for 6 years from the date recorded.
- When it happened
- More than 3 years agoOlder issues usually have less influence, especially when your credit since then is clean.
In short
- A previous repossession does not automatically prevent remortgaging a property you own now.
- Related entries, such as defaults or a shortfall debt, may have their own separate dates on your file.
- A long, clean credit record since the repossession is usually the strongest evidence you can offer.
- If you are unsure whether a shortfall debt is still outstanding, get free advice to check.
What might still show on your credit file after a repossession?
A repossession usually follows a period of mortgage arrears, so your file may show those arrears entries, and often a default once the mortgage account was closed. Each of these has its own date, and each stays on your file for 6 years from when it was recorded, which can mean different entries drop off at different times.
If the property was sold for less than was owed on the mortgage, the lender can pursue you for the difference, known as a shortfall debt. This is a separate debt, and if it later leads to a default or a county court judgment, that has its own date and its own 6 years, which can mean a shortfall-related entry appears well after the repossession itself.
What is a shortfall debt, and does it ever go away?
A shortfall debt is money still owed to a former lender after a repossessed property was sold. It does not disappear on its own, and there are legal time limits on how long a creditor can take court action to recover some kinds of debt, though these can be complex and depend on the type of debt and what has happened since. If you are unsure whether a shortfall debt is still being pursued, or how old it is, this is worth checking with a free debt adviser or a solicitor rather than assuming it has expired.
Contact the lender or its debt collector directly, or get free advice from National Debtline or StepChange, to find out whether a shortfall debt from a previous repossession is still outstanding.
How does time since the repossession usually affect a remortgage?
| Time since the repossession | How it is often viewed |
|---|---|
| Under 3 years, or a shortfall debt still active | Usually the hardest position, with a limited range of specialist lenders, if any |
| Over 3 years, clean record since, no outstanding shortfall | Often more options open up, though still likely to need a specialist lender while it remains on file |
| Approaching or past 6 years | May concern fewer lenders once the related entries have dropped off |
General illustration only. This depends heavily on the rest of your credit file and is not a fixed rule.
What can help build your case?
A long, unbroken record since the repossession, on your current mortgage and everything else, is usually the single strongest thing you can show. Being open with an adviser from the start about the repossession, what caused it and what has changed, tends to lead to a more useful conversation than it coming up partway through an application.
If other credit issues from the same period are still on your file, our pages on remortgaging with defaults and remortgaging with a CCJ explain how those are dated and viewed separately.
What may affect options after a previous repossession
| Factor | Why it matters |
|---|---|
| Time since the repossession | More time since, with a clean record, generally widens the options available. |
| Whether a shortfall debt remains | An outstanding shortfall debt is likely to be one of the most significant factors considered. |
| Related entries on your file | Any default or CCJ connected to the repossession has its own date and its own 6 years. |
| Credit record since | A long, clean run of payments and credit conduct since is the clearest positive evidence. |
| Loan to value on the current property | More equity generally gives a lender more confidence in a harder case. |
| Income and affordability | Stable, evidenced income now matters a great deal after a serious past credit issue. |
| Cause of the original repossession | A clear, resolved cause, such as illness or redundancy at the time, can help an adviser present the case. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- The approximate date of the repossession and, if possible, the closing statement
- Confirmation of whether any shortfall debt remains outstanding
- Recent copies of your Experian, Equifax and TransUnion reports
- Details of any related default or CCJ, with dates
- Recent statements for your current mortgage, if you have one, or proof of your current property
- Proof of your current income and outgoings
Frequently asked questions
Can you get a mortgage after a previous repossession?
It is possible for some people, usually once enough time has passed and any shortfall debt has been dealt with, alongside a clean credit record since. It tends to need a specialist lender while the repossession or related entries remain on file.
How do I find out if I still owe a shortfall debt?
Contact the previous lender or any debt collection agency involved, or get free advice from National Debtline or StepChange, who can help you find out what is outstanding and what your options are.
Does a repossession always lead to a shortfall debt?
Not always. It depends on whether the sale proceeds covered what was owed, including any costs. If they did, there should be no shortfall, but it is still worth confirming this with the previous lender in writing.
Will buying a new home reset my credit file?
No. Your credit file follows you, not the property. A repossession on a previous home, and any related shortfall debt, still shows on your file regardless of where you live now.