Buying a house after repossession

bossasbury

There is something id like to enquire about .
I'm asking for a friend because I know you're a knowledgeable bunch so thought it's worth a try .
My friend bought a house 20 years or so ago but he couldn't keep up repayments (job loss etc ) and eventually the house was repossessed around 18 years ago .He owed a fair bit and was chased up for it but couldn't pay . 
He's since sorted himself , and he's paid rent without fail for many years and never missed payments on bills etc since .
He's now looking to buy a house and has an approximate 35-40% deposit .

Will this past history go against him and would he declare he's not a first time buyer as when they may ask what happened to his first house , could this damage his chances .

theartfullodger

He may still owe from his repo.  Sorry (not sure of the processes..)

Before he spends funds suggest he checks..

(If someone owed you - say - several £k would you be happy to just forget about it? I wouldn't...

user1977

Not sure what you mean by "would he declare he's not a first time buyer"? Obviously he isn't a first time buyer.

If he wants advice he/you would be better to ask on the Mortgages board anyway as that's where the brokers hang out. How did he "sort himself" in relation to the shortfall from the repossession? Pay it off eventually or did they give up chasing?

Keep_pedalling

An 18 year old debt will be time bartheartfullodger said:

He may still owe from his repo.  Sorry (not sure of the processes..)

Before he spends funds suggest he checks..

(If someone owed you - say - several £k would you be happy to just forget about it? I wouldn't...

Creditors do it all the time which is why unsecured loans cost so much.

There is a very good chance any outstanding debt is time barred.

https://nationaldebtline.org/get-information/guides/mortgage-shortfalls-ew/

Bookworm105

bossasbury said:

Will this past history go against him and would he declare he's not a first time buyer as when they may ask what happened to his first house , could this damage his chances .

so are you suggesting that your advice to him will be to lie?

do you understand the contact of FTB?
- claiming FTB status for stamp duty purposes would have significant consequences
- claiming FTB status for a mortgage utterly depends on the lender. A few will accept people who have not owned within the last X tears, most won't. All require a binding declaration that could, ultimately, lead to repossession if found to have lied.

silvercar

No no FTB status. No problem with this, people often sell up and rent before buying again.

It would be sensible to avoid any lender connected to the repossession. Also, some lenders may ask the question if the borrower has ever been repossessed, so best to avoid those too. A broker could advise.

I’m surprised the original lender didn’t chase at around 11 years.

RAS

The original mortgage provider could chase for 12 years, depending on what the debtor signed. I'd suggest the friend looks at all their credit records in case anything still shows up? 

Then talks to a mortgage advisor. They should know which providers will consider people with repros, and which are related to the original creditor.

propertyrental

Check all 3 credit agencies.

newsgroupmonkey_

I was previously married and owned a house with my ex-wife. It was a number of years before I was in a position to be able to buy another.

No issues here when I applied for a mortgage. On the application there is a check box which says "Are you a FTB"
It doesn't say "Why were you? What happened to your house?"

I don't remember being asked if I'd been repossessed though. Did it online through Habito and was very happy with their service (even spoke on the phone to the same person several times!)

propertyrental

newsgroupmonkey_ said:

I was previously married and owned a house with my ex-wife. It was a number of years before I was in a position to be able to buy another.

No issues here when I applied for a mortgage. On the application there is a check box which says "Are you a FTB"
....

For SDLT (HMRC) purposes, the answer is in bold above.

For mortgage purposes, it depends on your lender's definition of FTB. Some will use the same definition, some define it as not currently a property-owner and or do not currently have a mortgage.

newsgroupmonkey_

propertyrental said:

newsgroupmonkey_ said:

I was previously married and owned a house with my ex-wife. It was a number of years before I was in a position to be able to buy another.

No issues here when I applied for a mortgage. On the application there is a check box which says "Are you a FTB"
....

For SDLT (HMRC) purposes, the answer is in bold above.

For mortgage purposes, it depends on your lender's definition of FTB. Some will use the same definition, some define it as not currently a property-owner and or do not currently have a mortgage.

Oh completely agree. I guess it's who is asking the question and what the context is.

Either way, it's irrelevant.