Mortgages for ex-bankrupts: how lenders look at a past bankruptcy
Payam AzadiTo be quiet honest I believe the majority of high street Mortgage Lenders treat discharged bankrupts unfairly when it comes to offering a Mortgage for Ex Bankrupts. Many high street lenders want several years to have passed since discharge, and some lenders choose never to deal with discharged Bankrupts. In my view the whole point of a bankruptcy is to reset to zero and start again, although I do accept that the contents of some bankruptcies may represent greater warning signs than others to Mortgage Lenders, but this should not be used as an excuse to simply processes and tarnish everyone with the same brush. Thankfully some of the Mortgage Lenders I use rise above the easy way out and take a more bespoke approach for Mortgage for Ex Bankrupts.
One thing to make sure is your credit file is reflects events. Ideally individual indiscretions within the bankruptcy should NOT feature but if they do then the settled date should match up with the bankruptcy date and may impact your credit score. Any subsequent issues will severely inhibit your mortgage chances.
Some mainstream lenders will consider applications a few years after discharge, which can mean more competitive rates than the specialist lenders which we also have access to. You must not have had a repossession as part of the past bankruptcy and a clean credit profile after being discharged with a good income structure.
Don’t worry if you can’t meet this criteria we have a number of Mortgage Lenders that deal with Mortgage for Ex Bankrupts with different criteria including some that consider more recent discharges, so it’s always worth giving us a call.
Read our guide to getting a mortgage after bankruptcy.
See our bankruptcy and IVA mortgage page or our main bad credit mortgage guide.
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