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.