Post Bankruptcy
Apply for a mortgage after bankruptcy in the UK
In 2022, 6,662 people filed for bankruptcy in England and Wales. This was a decrease compared to 2021, but this was mainly because a Debt Relief Order (DRO) increased the amount of debt that a person could have to £30,000 from a much lower figure of £15,000. This meant that more people could use this debt solution; in fact, 24,219 people took out a DRO in 2022 an increase of 17% in comparison to the previous year.
Bankruptcy has an impact on a person’s credit profile as it is shown for a period of six years from the start date of the bankruptcy. The positive aspect of bankruptcy in the UK, is that it runs for a short duration of one year (in most cases) and at the end of this year you are discharged from all debts and can make a start on improving your credit profile and moving forwards in life once again.
For many years it was very hard to obtain credit if you had a bankruptcy shown on your credit history. However, times are changing as more and more lenders begin to look at things in a different way due to the amount of people with affected credit. Some lenders have begun to offer specialist products to people that have been in formal debt solutions such as bankruptcy and IVA’s.
One positive about bankruptcy is that you are debt free at the end of this insolvency option, and this will help when a lender looks at providing a mortgage to you. Whether your credit is excellent or poor, having debt has a massive impact on a mortgage application. We are not saying that it is easy to obtain a mortgage after bankruptcy, but with our specialist knowledge and subject to certain conditions, it may be possible.
How can I get a mortgage after being bankrupt?
Contact us and our service will start with an individual assessment of your situation. We work in conjunction with Check my File, as this credit report will show your credit record information from all three of the major agencies in the UK.
You can obtain a free credit report form Check my File by using this link unless you have taken already advantage of this free trial on a prior occasion. Once we have a copy of your credit report, we will carry out an in-depth analysis to see if we have a lender that will offer you a suitable mortgage.
Once our team has assessed your situation, we will arrange a call to chat through the process and explain how things may work for you. As with any mortgage, you will need an income and a deposit and there will be a fair amount of proof and documents that are required.
You will need to be discharged from bankruptcy before you can obtain a mortgage. The length of time that you have been discharged will also affect the way that your application is dealt with. Loan to value (LTV) ratios will change as you go through the initial stage just after bankruptcy. If you are applying for a mortgage straight away after being discharged, you may need a higher deposit for the lender. As your bankruptcy ages on your credit report the loan to value (LTV) ratios will change, meaning that you may need less of a deposit. Either way, the more of a deposit you have the better your chance of success in getting a mortgage.
With our experience we can make this happen for you; call or contact us to take the first step forward and let our team help you through this complex process.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The answer to this is yes but subject to certain conditions. The team at Anderson Reed have a specialised department to assist you if you have had some past issues with debt. One of the main factors will be whether the debt is now fully paid off and if so, when the debt management plan finished.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you are currently in bankruptcy and not yet discharged, you won’t be able to obtain a mortgage. You will need to wait until you are officially discharged from bankruptcy; normally 12 months after the start date. Once you have been discharged from bankruptcy, you can look at repairing your credit and start to consider the mortgage options that are available to you. We will work with you and consider your best options and if a mortgage can be obtained, this will be an excellent way to start your credit repair process as well.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
It is possible to get a mortgage after having a Debt Relief Order (DRO). A DRO is an official Insolvency solution and in the same way as bankruptcy or an IVA they will impact on your credit rating for six years from the start date. However, with our specialist knowledge and assistance, we will be able to consider your current position and look at our panel of lenders to see who may be able to help you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
Your credit profile will affect the mortgage rate that is offered to you. In simple terms the lender will consider that you are a higher risk in comparison to someone with a perfect A1 credit rating. The good news is that it is possible to get a mortgage with a poor credit record, but much will depend on what the problem is or was at the time. The good news is that our specialist team will always keep an eye on your situation. As soon as you begin to rebuild your credit, we will then look at a re-mortgage with a lower rate of interest. If you maintain your regular monthly mortgage payments you will be able to move onto better products with lower rates of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
A County Court Judgment does have an impact on your credit. However, a mortgage is still possible. Our specialist mortgage lenders will look at your case on an individual basis which is exactly what is needed here. Some CCJ’s can be for a very low amount of money and may have been applied without your knowledge. It will always help if the CCJ has been paid off/settled and each case is individual and must be assessed before we can decide if we can assist.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
If you do not have much active credit, it can sometimes be hard to obtain new credit agreements, even if you are a wealthy individual with no past credit issues. This is because the lender does not know how you handle credit agreements or regular payments as they have no history to base their decision on. Our team has good knowledge of these unusual situations and will be able to help you with advice and to find the best lender and rate for you.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The specialist lenders that we use for people with adverse credit will regularly change the criteria for supplying mortgages to people that have been through bankruptcy. You may need a higher deposit amount if you are looking at obtaining a mortgage shortly after bankruptcy so contact us to discuss your circumstances and we can look at the latest information and guide you through this process.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.
The answer to this is yes but subject to certain conditions. When buying an investment property, the same basic rules will be in place when applying. Credit rating and deposit will play a part in the decision-making process, but when you complete an IVA your credit rating will be improving massively over the next 12-24 months when the IVA clears from your credit history. At this stage, we will be looking at re-mortgaging you to a better product with a lower rate of interest.
Call or contact us now for some free help and advice and let us assist you onto the property ladder.