Mortgage after bankruptcy

Updated 28th September 2020

Mortgage for discharged bankrupts.

There was a time when being declared bankrupt would mean that no one would lend you money. Bankruptcy was seen as the most severe form of adverse credit. The stance has softened slightly due to the number of people who went bankrupt during the recession.

You will need the services of a mortgage expert to help you obtain a mortgage, Each lender has vastly differing criteria surrounding bankruptcy. Some lenders will never lend to you if you’ve been bankrupt, whereas others will need you to be discharged for a minimum period of time.

Our experts will be able to guide you through the whole process They will make sure all your information is correct and the credit reports have been updated.

To speak to one our experts call 0300 124 5655 or complete our quick enquiry form.

Can I get a mortgage after bankruptcy?

Yes, it possible to get a mortgage after bankruptcy. It will be more difficult, and this will potentially be reflected within the mortgage interest rates that lenders are prepared to offer – this is especially true if the bankruptcy is still showing on the credit report. Mortgage for discharged bankrupts need more attention to detail.

Some lenders won’t lend to you at all after being bankrupt, So, it is vital to declare any bankruptcy from the beginning.

How long after bankruptcy can I apply for a mortgage?

This is one of the key areas when it comes to looking at mortgage options, the old saying “time is great healer” is certainly true in this case. You will need to be discharged a minimum of 12 months and need a sizeable deposit of 30-35%.

The market really opens up once you have been discharged for 3+ years. Potentially you would need a 15%.

Once the bankruptcy is off the credit file (6 years from registration date) then your options will vastly improve. If you have been good with credit and built up a good score with no further issues, then it is possible with 10% deposit.

As previously mentioned when looking at mortgage for discharged bankrupts, even if the bankruptcy isn’t showing on your credit report you must always declare it. Our experts have some exclusive deals which aren’t available to all brokers.

How much can I borrow after a bankruptcy?

Each case is assessed on its individual merits. Typical calculation is between 4-5 times income. The larger your deposit levels the more chance of borrowing more money.

They will also look at your income and any other expenditure, other debts, childcare costs and basically any monthly commitment.

Using the right lender for your circumstances is pivotal in ensuring you can borrow the money needed and at the best possible rate of interest.

What is the National Hunters Database?

This is an anti-fraud register and contains the record of anyone that has been declared bankrupt. If you don’t declare the bankruptcy and it’s not showing on the credit report, the lender won’t pick up on it, however the solicitors will perform a bankruptcy search as part of the conveyancing process and it will get picked up at the last stage of the process.

Check your credit reports.

Did you know there 3 credit report agencies – Experian, Equifax & Transunion. Each report will have slightly different information recorded – the reason for this being that lenders don’t have to report credit information to all agencies.

To check your latest credit report click here.

After a bankruptcy it is vital that all the credit reports match,. This entails any defaults or CCJ’s that were part of the bankruptcy now showing as settled. Also, ensuring that bankruptcy dates and discharge dates are correct.

You will also need to ensure that you are showing on the electoral roll at your current address.

How an expert bankruptcy advisor will help.

Our experts will run through everything with you. They will be able to tell you deposit levels needed, borrowing potential and timescales involved.

After reviewing the information they will decide if you are eligible now or tell you when you would be. They will outline all the  steps involved to get you on the property ladder. Your expert can also advise on how to improve your credit score, some examples are.

• Register for electoral roll
• Ensure all credit commitments are paid on time
• Keeping credit/Store Cards within agreed limits
• Use a credit builder credit card
• New credit applications – try and avoid as this will lower your score initially

Things to avoid.

• Taking out any short-term credit
• Gambling transactions on bank statements
• Going over any agreed credit limits
• Missing any payments on any credit commitments.

Can I get a buy to let property after bankruptcy?

It is possible to get a buy to let mortgage after bankruptcy. The more deposit you have the better. Currently the absolute minimum is 15% but ideally you would have 20-25%.

You would need another property in the background and have some form of personal income.

Speak to a bankruptcy mortgage advisor

There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or can’t borrow what they need – just because one lender has declined you, don’t give up.

Our mortgage experts will look at each case before deciding which lender is right for you and your individual circumstances. All the mortgage brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving your mortgage for discharged bankrupts

The expert brokers we work with have experience in dealing with all aspects of mortgages after bankruptcy and importantly using the whole of the market to access the very best deals available.

To find out how we can help call us on 0300 124 5655 or complete our quick enquiry form to speak to a mortgage expert.



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