Getting another mortage after repossession

Dougie714

[FONT=Verdana, Arial, Helvetica]Due to financial difficulties and us entering an IVA, we are now about to Voluntarily Surrender our home to the Northern Rock.

My question is the long term affect this will have, as it is classed as a form of re-possession. We can cope with renting whilst in the IVA for 5 years or so but once complete we would definitely want to buy a property again. Will the repossession history stay with us permanently and thus prevent us getting a mortgage in the future, or does it get wiped clean after 5 years as the bad debt/IVA will?[/FONT]

SouthCoast

How long do my details remain on the Possessions Register if I have had a property taken into possession?

Entries on the Possessions Register remain there for a period of six years from the date of possession. After six years your details will be automatically removed from the register.
© Council of Mortgage Lenders 2006

...............................

Dougie714

Thanks for the quick reply, so officially it is off after 6 years.

Anyone know if it's likely to come up as a standard question on a mortgage application such as " Have you ever had a property repossessed". ?

I know this is the case for Bankruptcy, even though that clears after 5 years creditors can ask you if you have ever been so, which is one reason we elected for the IVA route.

SouthCoast

If you have a mortgage shortfall more information can be found here:

http://www.cml.org.uk/cml/consumers/guides/debt#3

ILW

If there is a shortfall, the outstanding debt will remain for 12 years I believe. This may affect your ability to get another mortgage. If the voluntary posession clears the mortgage or you can pay off any shortfall there should be no problem.

Mrs_Bumble

Anyone know if it's likely to come up as a standard question on a mortgage application such as " Have you ever had a property repossessed". ?

It is a standard question on every lender's mortgage application form, if you don't answer truthfully then you are committing fraud. If the lender then finds out they will place a CIFAS warning on your credit file, which will prevent any credit being obtained at all.

I wouldn't hold out any hope of obtaining another mortgage any time in the foreseeable future.

Is voluntary possession the only way that you can go? Are northern rock seeking proceedings at all?

Radiantsoul

If you are losing the house surely bankruptcy would be a better option as it would only last for a single year?