Past bankruptcies can make applying for a mortgage an unnerving process. Most high street banks will struggle to understand your situation, and will refuse to lend to you. As a result, you may be feeling frustrated and worried that you will never be able to find your way back onto the property ladder. We’re here to put your fears to bed. Bankruptcy doesn’t have to define your financial life. Our specialist bad credit mortgage advisors have helped many people discharged from bankruptcy achieve the finance they need to buy their home. We take the time to understand your past (monsters and all), then show you what’s possible.
Can I get a mortgage after bankruptcy?
Yes, you really can. If you’ve been bankrupt in the past, it is unlikely you will qualify for a standard mortgage deal with a high street bank. However, there are numerous specialist lenders who may consider your application. You may find that there are limits on the amount you can borrow as a percentage of the property value, and you may need a larger deposit and be charged higher interest rates. Our specialist low credit score mortgage advisors will be able to analyse the market and your behalf and identify suitable deals for your situation. Whatever has happened in the past, it doesn’t have to get in the way of your homeowning dreams.
Can I apply for a mortgage within 1 year of bankruptcy?
Unfortunately, on this occasion, you may have to wait. Most lenders will want you to have been discharged from bankruptcy before they will consider your mortgage application, and this only happens after one year. There also may be court conditions which state you should not apply for any new credit in the first year. As with many negative marks on your credit file, the longer ago the incident took place, the better and the more deals available to you.
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How long does bankruptcy remain on my credit file?
Bankruptcy will remain on your credit file for 6 years, or until your formally discharged. What’s more, you must declare your bankruptcy whenever you seek to borrow money over £500, and any lender that does let you borrow during this period may charge higher interest rates. This is because you will be viewed as a high-risk customer due to your issues dealing with money in the past. After 6 years though, or after you have been discharged, the mark will be removed from your credit file. With the right advice and support, you can repair your file, and get back on the property ladder after bankruptcy.
How much deposit will I need to buy a house after bankruptcy?
Lenders always look favourably on applications with larger deposits, whatever the specific circumstances. When it comes to bankruptcy, lenders may only consider you if you are able to put down a sizable deposit, however this can vary between lenders. The length of time since you were classed as bankrupt will also be a factor in deposit size. For example, if you were discharged over 3 years ago, there will be far more options available to you than if it was the first year, and you may not need such a big deposit. As ever though, a bigger deposit equals a greater number of mortgage options.
Mortgages with bankruptcy FAQs.
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Trusted advisors for mortgage applicants with bankruptcy.
Bankruptcy is a significant and scary incident in anyone’s life, and it can make the mortgage application process more difficult. Though some lenders won’t consider you with this mark on your credit file, we have years of experience connecting discharged bankrupts to those who will. We know that people change and learn from past mistakes. That’s why we’re committed to helping people in a range of circumstances get on the property latter in spite of the past. We’ll take the time to understand your credit history, provide non-judgemental support and guidance, and seek out the most appropriate deals for you.
Helping you move on.
Overcoming your fears when looking for a finance after bankruptcy can be difficult, but our specialist low credit score mortgage advisors are here for you. Some banks only deal with straightforward customers, but many will understand that life happens, and mistakes are made – lenders are human too. We work with lenders who will understand your circumstances and look past your historic bankruptcy to see the person you are now. Skeletons in the closet, monsters under the bed – it doesn’t matter to us. We’re here to help you move on from bankruptcy, and move into a home of your own.