Your current circumstances are what matters now, right? So, as we know which lenders will give you a result based on your present situation, we can make sure your mortgage application is successful.
There are lenders who will accept a mortgage application following a bankruptcy and we know who they are, and as we have strong relationships with their underwriters, we know what it takes to deliver you a successful application.
Circumstances surrounding bankruptcy are often completely out of your control and it is important that as your advisor, we understand the circumstance behind your bankruptcy and more importantly know how your situation will be viewed by the lenders.
Our experience and knowledge of these lenders’ criteria will help us prepare and present your application based on our understanding of your full situation, this will ensure that the lenders’ underwriter is willing to support your application and happy to issue you with a mortgage offer.
Securing a mortgage after bankruptcy can be challenging. But despite bankruptcy being one of the most serious types of adverse credit, it’s still possible to still get a mortgage. There are specialist lenders who will be willing to give you a mortgage, even if your bankruptcy hasn’t been discharged for 12 months.
Bankruptcy is sometimes unavoidable, so the lenders we work with want to understand the circumstances surrounding your bankruptcy, particularly how you’ve managed your finances since it happened. That’s why it’s important to us that we take the time to understand your circumstances and present your case in a way that the lender’s underwriter has all the facts to assess your application in a positive way.
You also need to consider that getting a bankruptcy mortgage may require you to provide a bigger deposit and pay a higher interest rate.
How long it has been since you were discharged from your bankruptcy will also impact the amount of deposit required. There are very few lenders that will consider a borrower that has been discharged from a bankruptcy less than 3 years, and each lender will have their own different criteria, but as a guide the following amounts are likely to be sufficient to support your mortgage application.
We understand the trigger points where an application can fail or succeed and have the necessary experience and relationships with these lenders to understand the very specific criteria they look for. And we will do everything we can to give your application the best chance of success.
Using a specialist bankruptcy mortgage advisor is extremely important when applying for a mortgage after bankruptcy. Looking at the right lenders is key. You have a better chance of getting a mortgage following bankruptcy with an advisor who understands the requirements of individual specialist lenders.
Adverse Mortgage Advisors can help you, get in touch and we’ll be happy to take a look at your financial situation. If we believe it’s possible, we’ll do everything we can to get your application approved.
If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.
The waiting time before you can get a mortgage after bankruptcy varies. There are lenders that will consider applicants on the day they are discharged from their Bankruptcy. However, it is more common that lenders will want you to be discharged for 12 months before considering your application.
Unfortunately, this will not be possible.
A person judged by a court to be insolvent because they are unable to repay their debts as they owed more than could be repaid. Property can be taken and disposed of for the benefit of their creditors.
Time is the greatest healer as they say. The best advice we can give is to focus on being able to demonstrate and prove what steps you have taken to improve your personal circumstances and be realistic about what options are going to be available for you as lenders are going to be limited until you have been discharged from your Bankruptcy for 3 years.
Yes, a mortgage is possible if you have previously been bankrupt but not whilst you are currently bankrupt. Typically, you would be discharged from a bankruptcy after 1 year (this would be called a ‘Day 1 discharge’ as it would become effective on the 366’th day).
A bankruptcy will remain on your credit file and the insolvency register for 6 years from the date of registration so lenders will be able to see that you were bankrupt in the past, and this may impact your ability to qualify.
To improve your chances of qualifying for a mortgage after bankruptcy, you should take steps to rebuild your credit by ensuring bills are paid on time, keeping credit card balances low. Adverse Mortgage Advisors have strong relationships with all the specialist lenders who have the experience of working with borrowers who have had a bankruptcy in the past.
Lenders will want to understand the circumstances which led to the bankruptcy and what steps have been taken since to improve your circumstances. A larger deposit will be required to support your mortgage application whilst a bankruptcy is on your credit file.
It may be more challenging to qualify for a mortgage after a bankruptcy, but it’s not impossible. There are lenders that will consider day 1 discharged bankrupts, however more often lenders would expect your to be discharged from your bankruptcy for 12 months before they will consider your application. The deposit likely to be required at this point is 25-30%.
Once you have been discharged from your bankruptcy for 36 months a mortgage may be possible with a deposit as low as 5% providing there have been no further adverse or missed payments recorded against you since your bankruptcy.
Adverse Mortgage Advisors work closely with all the lenders in the UK which will consider offering a mortgage to a borrower who has a bankruptcy on their credit file. We understand the importance of presenting your application in a way that will give the underwriter the confidence that your mortgage is not likely to fall into arrears.
The deposit you are likely to require following bankruptcy is as follows:
30% deposit – day 1 discharged
25% deposit- discharged 12 months.
20% deposit – discharged 24 months.
5% deposit – discharged 36 months with no other negative markers on your credit file.
