Echo Finance

I’ve had mortgage arrears, can I get a mortgage?

Let’s not pretend a history of mortgage arrears is the last thing any Mortgage Lender wants to hear. It’s the one bill above all others that they take comfort in if they are to lend. In fact I’d go as far to say even missed payments of status 1’ or ‘2’ on a credit file would put most high street Lenders off. However not all Mortgage Lenders are the same and Niche Advice specialists in complex situations including mortgage arrears.

In this article we concentrate on purchasing a property to live in after getting mortgage arrears. Remortgaging is possible but probably only advisable if you want to release more money.

So how missed is missed?  Well the table below gives you a flavour of where we can help. This should be read in conjunction with a credit report from experts such a Equifax or Experian.

Your acceptance will of course be subject to the usual mortgage checks on affordability, residency, deposit etc.

Guide to Maximum Mortgage Arrears when trying to get a new mortgage

Worst Missed Payment Level* When they occurred Minimum deposit
Status ‘1’ Over 9 months ago 15%
Status ‘2’ Over 9 months ago 20%
Status ‘2’ Over 6 months ago 25%
Status ‘3’ Over 6 months ago 30%
Status ‘6’ Over 12 months ago 25%
Repossession** Over 13 months ago 25%

 
* Based on levels in the last 3 years. More tolerance may apply on older scenarios.

** There must be a life changing event that happened to cause the repossession i.e. job loss, divorce / separation, business failure, illness to you or close family member, and your circumstances must have improved. The repossession must not have included a debt shortfall or repayment plan

You should always consider approaching your current Mortgage Lender to see if they can help with a new mortgage after mortgage arrears, and also speak to a renowned specialist Mortgage Broker.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
Echo Finance

Registered in England and Wales No. 6939070. Registered office - The 1812 Building, Wheatley Park, Mirfield, West Yorkshire, WF14 8HE. Echo Finance Limited is authorised and regulated by the Financial Conduct Authority. Echo Finance Limited is entered on the FCA register (www.fca.org.uk) under reference 570073. The Guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing, Estate Planning and some forms of Mortgages. © Copyright Echo Finance Limited. Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: www.financial-ombudsman.org.uk.

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