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How Does A Repossession Affect My Credit Rating?
Question: Hi, my partner has recently been though a divorce and due to the whole mess he was in his house got repossessed. He now lives with me, but we want to buy a house together. But before we start trying to sell this one that I own, we want to know how the repossession will have effected his credit rating? Anon – Luton.
Our Answer…
Hi Anon! Trying to buy a house after a repossession is not easy so I won’t try and tell you other wise. People with a history of debt usually find it hard to get a mortgage, and people with an entry on the Council of Mortgage Lenders repossession register will find it even harder. This entry lasts 6 years.
If you are able to find a mortgage you will certainly have to pay a high interest rate, as “sub-prime” lenders (which mean lenders who lend to people who don’t have a good credit score). My advice to you would be to hold off trying to buy a house together or at least until the “credit crunch” eases up.
The other option to explore is the possibility (if you do need to move) is if you are able to be the sole name on the mortgage – as assumingly your credit score is good. Sorry I can’t be more positive at this point.
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