Can I get a Mortgage as an ex Bankrupt?

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We often receive calls from people who have been bankrupt who ask if they can get a Mortgage as an ex Bankrupt?

Getting a Mortgage as an ex Bankrupt

There are a couple of general rules when it comes to getting a Mortgage if you have been bankrupt in the past and some mortgage lenders are more lenient than others but the rules are not black and white, so it is always worth giving us a call to have a chat, but getting a mortgage as an ex-bankrupt is a possibility, and one that increases since the date of discharge.

Most lenders work off the discharge date rather than the date you were declared bankrupt so if you have been discharged from the Bankruptcy for 1 year, there are Mortgage lenders who will consider you with a 25% deposit, albeit rates will be around the 6% mark (based on todays rates).

If you have been discharged from the Bankruptcy for 3 years, there are Mortgage lenders who will consider you with a 10% deposit at “normal” rates.

At 4 and 5 years discharged there are a couple of extra lenders available to reflect the time elapsed since the bankruptcy and as such there is more room to work with and options for us to present as mortgage advisers.

Most Mortgage lenders however kick in at 6 years discharged and although there are a few lenders who will never accept an applicant who has been bankrupt in the past there are plenty of options at the 6 year mark and it follows that the rates on offer are typically lower to reflect the circumstances and the larger the deposit on offer the better the outcome.

There are also lenders who will work off the date you went bankrupt, so if none of the rules above apply and/or you have been bankrupt or in the IVA/DRO for a few years, then there may be still options.

What should I do next?

Having had a bankruptcy in the past or even only becoming an ex-bankrupt in the last year or two doesn’t mean an automatic no to a mortgage these days and there are always new options coming on to the market and changes in the way some lenders look at the issue.

Give us a call, we are always happy to have a quick chat with no obligation to proceed. If we can not help you at the time of the call, we can at least try to give you some pointers and time frames, our number is 0161 327 2799.

If we can help, it can be worth getting a copy of your Discharge Certificate/Letter, you can speak to the court about this if you do not have one. It WILL be needed for the Mortgage lender and can take time to get, so there is no reason to look at getting the letter as a priority.