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Can I get a Mortgage after Bankruptcy

Bankruptcy isn’t a pleasant experience for anyone. And, unsurprisingly, getting a mortgage after bankruptcy won’t be the easiest of tasks either. But don’t panic, we’re going to guide you through ‘the eye of the bankruptcy storm’ to show you that getting a mortgage after bankruptcy doesn’t just have to be a dream. 

You need to realise that anecdotes about it being impossible to get a mortgage shortly after being made bankrupt are false. We’re going to show you why.

Getting a Mortgage After Bankruptcy

First, you’re going to need to organise yourself: 

Ok, so we know that looking for a mortgage after bankruptcy isn’t going to be the easiest of tasks. But, if you take the right steps it can become more than just a possibility! What’s going to be vitally important is that you learn from your mistakes.

A lot of this will depend on when you are discharged from your bankruptcy. This is where after usually a year of being bankrupt you will be released from any debts covered by any debts which are covered by your bankruptcy. This is important because it will not be possible to obtain a mortgage until you have been discharged from bankruptcy.

Make sure that you live within your own means. This means that if you’ve got a credit card there’s no problem in using it but pay it off every month. Another to make this sustainable would be to only allocate spending using your credit card to certain items. For example, this could take the form of using it only for food shopping or for filling your car up with petrol.

The key to this is going to be making life as easy as possible for the lender to see that you have changed your ways. This means that you should meticulously go through your whole credit file and credit ratings. Make sure that any lenders that you’ve contacted can see that you’ve made a real effort to settle your account following the date of your bankruptcy declaration.

Get advice:

If you’re in search of advice and you are strapped for cash, then look no further. At Mortgages Online, we got loads of Articles full of advice on all things mortgage related. So, if you’ve got any more questions get in touch. What we can do for you is compare a range of different mortgage lenders that would be able to consider your options for you given your financial situation.

Remember that a lot of these lenders are going to be basing their decision to lend on personal circumstance. Therefore, you may be able to increase the likelihood that you’ll find a lender who is willing to let you borrow from them, should you reveal your situation to them.

Do your own research:

This is going to be really important. Ultimately, it’s going to be you that’s going to have to make the changes and organising yourself to give yourself the best shot at getting a mortgage. This means that you may need to explain to any lenders how long you have been discharged from your bankruptcy.

Importantly, mortgage lenders are also likely to require deposits of up to 50% and want higher rates. So, make sure that you try and speak to a lender about whether they’d make any exceptions given your own personal situation. It can be possible to get deposits that range around the mid-thirties range, so make sure you explain your situation properly!

Should you need any debt management advice, there are loads of free resources you can use. Including the National Debt Line. They’ll be able to help with debt management plans and helping you get back on track.

As an online mortgage broker, MO can compare 1000s of deals, from 100s of lenders, to find the one that is right for you.


Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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