I’ve previously been bankrupt, can I get a mortgage?
We are often approached by people who ask whether they can get a mortgage after being declared bankrupt. Now, the truth is that it is more difficult achieve mortgage application success with a poor credit rating, but it most certainly isn’t impossible.
There are specialist brokers out there that have the knowledge and expertise needed to make sure that a) your application is up to scratch and b) that you get access to a range of exclusive mortgage rates and offers that you won’t find on the high street.
Exclusive Niche Mortgage Deals
You shouldn’t despair if you’ve been turned down for a mortgage by every high street lender, because there’s a reason why you’ll have likely been unsuccessful when applying via traditional channels. Mortgage rates and deals from the major lenders are typically geared to the mainstream market, so it’s not surprising that you’ve found it tough to get an offer if you have been recently discharged from bankruptcy.
A specialist or niche mortgage broker will know where to find the best deals with the best rates for people in your position, so if any of the following applies to you, we can put you in touch with someone who can help:
- You’ve been discharged from bankruptcy for over 12 months & have between 5-15% deposit
- You’ve had a home repossessed in the past
- You’re looking for a buy to let mortgage after being discharged from bankruptcy
- You want to remortgage after bankruptcy discharge
How long do I have to way after bankruptcy to apply for a mortgage?
Legally speaking, in the United Kingdom, you’ll have to wait for one year before obtaining any kind of credit after being discharged from bankruptcy. There can be special dispensations granted by the courts, but this is quite rare and has to be due to exceptional circumstances.
From the lender’s point of view, there are some companies that will offer you a mortgage from the moment you get discharged, but this will usually involve meeting some stringent criteria, less than favourable interest rates and a sizeable deposit.
The longer it has been since you’ve been out of bankruptcy, the better and the magic figure for most of our lenders is the 6 year point, as this is when it ‘falls off’ your credit file. It is possible to apply for and obtain a mortgage before that point, but if you do the application may be less straightforward and the rates offered that much less attractive.
So, if you’d like to know about the exclusive deals that are designed for people just like you, talk to one of our recommended brokers today!