What is...

Repossession

Repossession refers to a lender taking the item which was offered as security on a secured loan in the event of payments entering default. This often refers to a mortgage lender repossessing a property, so it can be sold to recover the owed amount, although there are many alternative forms of security.

Will a Repossession appear on my Credit Report?

Repossessions, like defaults and CCJs are reported on your Credit Report for six years from the date of first reported. Once this period is over, it will automatically be removed from your Credit Report, but when applying for credit a lender may ask if you have ever been declared bankrupt or had property repossessed. If this is the case, you are legally obliged to answer truthfully, or risk the lender being able to exit the agreement at any time.

checkmyfile collates your data from Equifax, Experian, TransUnion, and Crediva onto a single report, ensuring you don’t miss anything important.

If you haven’t already, you can try checkmyfile free for 30 days, then for just £14.99 per month. Cancel easily online at any time.

What happens if your rented property is repossessed?

If you have a binding tenancy then the mortgage lender assumes possession of the house and becomes your landlord. If the tenancy isn’t binding then there is a risk of becoming evicted from the property.

If a lender seeks possession of a house, there is a strict protocol set out from guidelines by UK Finance (formerly the Council of Mortgage Lenders/CML), whereby the mortgage provider follows certain steps to try and resolve the issue satisfactorily. If these steps fail, the lender may apply to the court for a possession order. If this is granted, the lender will repossess the property.

The UK's First Provider Of Online Credit Reports

Launched 21 Years, 35 Million Credit Scores & 8 Million Credit Reports Ago

The UK's First Provider Of Online Credit Reports

Related Jargon