Mortgage after Bankruptcy

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

Can I get a mortgage after bankruptcy?

Yes you can.

Going bankrupt is often thought of as the most severe credit issue one can have on their file, and they wouldn’t be far wrong. Getting a mortgage after bankruptcy can therefore seem out of reach for most people, and for most lenders, they would be right. However, I work with a range of specialist adverse mortgage lenders who can offer mortgages to those who have been made bankrupt.

Many people I speak to are delighted to find that after talking to me they qualify for a mortgage having been made Bankrupt as they assumed they would have to wait 6 years until it no longer appears on their credit file .

Does my bankruptcy need to be discharged to get a mortgage?

In short, yes – you can get a mortgage the day after you have been discharged though!

The saying time is a great healer is never truer than when applied to getting a mortgage after bankruptcy. If you have an adverse credit history, the longer the period from when you were discharged from Bankruptcy, the better your chances are of getting a mortgage and being able to borrow more.

So how much can I borrow?

That depends on how long you have been discharged but firstly, you cannot have a mortgage if you are still a Bankrupt – you must be discharged, or have it annulled.

Detailed below are the loan to value limits for how much you could borrow from the date you are discharged.

70% – the day after you are discharged

75% – discharged for 1 year

80% – discharged for 2 years

90% possibly 95% – discharged after 4, 5 or 6 years

Key things to consider when getting a mortgage after bankruptcy

Property Repossessed in the Bankruptcy

If you had a property repossessed in the Bankruptcy and there was a mortgage shortfall, this will require further investigation by a lender. They would be concerned that if the lender were to find out you were applying for a mortgage, they could ask you to settle any outstanding mortgage. If this is case, please draw the repossession to my attention when we speak.

Bankruptcy Annulled

You can ‘cancel’ a Bankruptcy if you clear the debt within a certain time frame and this has the effect of putting you back in a good position, as though the bankruptcy never happened. For example, you could raise funds from the equity in your home before being made Bankrupt.

How long are you Bankrupt?

Your Bankruptcy should only last for one year after which time, provided you have complied with the T’s & C’s of the Bankruptcy Order, you will be discharged. If you have not complied with the Order, for example not declared assets that could have been used to clear debt or withheld information from the Trustees, this could be extended. If this happens, lenders will take a dim view of this as you will not have been open and honest with your dealings with the Trustees.

Getting a Help To Buy Mortgage after bankruptcy

I know of a lender that would consider you for a bad credit Help to Buy Mortgage up to 75% loan to value if you have been discharged for at least 1 year or another lender to 70% the day after you are Discharged!

If you’re looking for Help to Buy (H2B) or Shared Ownership Mortgage advice after bankruptcy, I can help.

Use a broker for your mortgage after bankruptcy

Going direct for a mortgage after bankruptcy is not advised. A specialist lender will know the strict criteria for those seeking a mortgage after being bankrupt, and it’s key to get the application right the first time. For more information on how I can help you please call me on: 01494 526400 or complete my online enquiry form.

Mortgage after Bankruptcy

Steven Neale
By Published On: December 2, 2019Last Updated: May 10, 2024

Can I get a mortgage after bankruptcy?

Yes you can.

Going bankrupt is often thought of as the most severe credit issue one can have on their file, and they wouldn’t be far wrong. Getting a mortgage after bankruptcy can therefore seem out of reach for most people, and for most lenders, they would be right. However, I work with a range of specialist adverse mortgage lenders who can offer mortgages to those who have been made bankrupt.

Many people I speak to are delighted to find that after talking to me they qualify for a mortgage having been made Bankrupt as they assumed they would have to wait 6 years until it no longer appears on their credit file .

Does my bankruptcy need to be discharged to get a mortgage?

In short, yes – you can get a mortgage the day after you have been discharged though!

The saying time is a great healer is never truer than when applied to getting a mortgage after bankruptcy. If you have an adverse credit history, the longer the period from when you were discharged from Bankruptcy, the better your chances are of getting a mortgage and being able to borrow more.

So how much can I borrow?

That depends on how long you have been discharged but firstly, you cannot have a mortgage if you are still a Bankrupt – you must be discharged, or have it annulled.

Detailed below are the loan to value limits for how much you could borrow from the date you are discharged.

70% – the day after you are discharged

75% – discharged for 1 year

80% – discharged for 2 years

90% possibly 95% – discharged after 4, 5 or 6 years

Key things to consider when getting a mortgage after bankruptcy

Property Repossessed in the Bankruptcy

If you had a property repossessed in the Bankruptcy and there was a mortgage shortfall, this will require further investigation by a lender. They would be concerned that if the lender were to find out you were applying for a mortgage, they could ask you to settle any outstanding mortgage. If this is case, please draw the repossession to my attention when we speak.

Bankruptcy Annulled

You can ‘cancel’ a Bankruptcy if you clear the debt within a certain time frame and this has the effect of putting you back in a good position, as though the bankruptcy never happened. For example, you could raise funds from the equity in your home before being made Bankrupt.

How long are you Bankrupt?

Your Bankruptcy should only last for one year after which time, provided you have complied with the T’s & C’s of the Bankruptcy Order, you will be discharged. If you have not complied with the Order, for example not declared assets that could have been used to clear debt or withheld information from the Trustees, this could be extended. If this happens, lenders will take a dim view of this as you will not have been open and honest with your dealings with the Trustees.

Getting a Help To Buy Mortgage after bankruptcy

I know of a lender that would consider you for a bad credit Help to Buy Mortgage up to 75% loan to value if you have been discharged for at least 1 year or another lender to 70% the day after you are Discharged!

If you’re looking for Help to Buy (H2B) or Shared Ownership Mortgage advice after bankruptcy, I can help.

Use a broker for your mortgage after bankruptcy

Going direct for a mortgage after bankruptcy is not advised. A specialist lender will know the strict criteria for those seeking a mortgage after being bankrupt, and it’s key to get the application right the first time. For more information on how I can help you please call me on: 01494 526400 or complete my online enquiry form.

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Hopson & Johnson – 3rd June 2024

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Hentschel – 29th May 2024

We experienced difficulty in finding our original mortgage and Steve and Sue were instrumental in helping us purchase our first home. Likewise, when it came to remortgaging 2 years later they were pivotal in finding us a suitable mortgage rate with a new provider.

Henschel – 27th March 2024

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Anon – 4th March 2024

Steven and Sue have been absolutely wonderful throughout the whole mortgage application process. Even when we were unsuccessful with our first application which left us panicking, Steven remained calm and professional, informed us there were plenty of other options and worked quickly on a new application suited to our needs. Steven would answer his phone efficiently and if he missed us, he would call back immediately, something which can be quite rare these days. We would recommend Steven and Sue to anyone that maybe struggling with the whole mortgage process, especially the self employed, they took all the stress from us and deserved every single penny we payed them. We will absolutely be returning to Steven and Sue in the future and only wish we had found them sooner. We found them to be invaluable and an absolute pleasure to deal with, they are the reason we can finally sleep well at night! Thank you both again.

Oldham – 22nd February 2024

Helpful and helped us in finding mortgage with suitable interest rates given our adverse credit at the time

Kunda – 15th February 2024

I have used Steve twice now and both times he has been professional and has always listened to me, which was very reassuring when I was considering not buying anymore and giving up on the process.

Anonymous – 6th February 2024

Steve and Sue have been fantastic, they worked hard to get our application pushed through before Christmas and were on hand and very responsive to any questions that we had regarding our mortgage application. I would highly recommend.

Martin – 2nd January 2024

I have felt very well looked after throughout this process, and advocated for, to meet my individual financial needs. The communication between Steven, Sue and I has been of the highest standard, and I could not have asked for more. I was treated without prejudice, and with understanding, and I am so happy that I have been able to buy a home which my daughter and I can now settle into, and start a new chapter. Thank you so much Steven and Sue!

Hentschell – 21 November 2023

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