Mortgages available to discharged bankrupts
Because bankruptcy orders are registered with credit reference
agencies for a period of six years, people who have been declared bankrupt often experience
difficulty when trying to get a mortgage. Most high street
lenders regard ex bankrupts as a higher risk when compared to other borrowers.
However there are a few high street lenders
and some specialist lenders who recognise that a history of bankruptcy is not
necessarily an indication of a borrower’s ability to pay their
mortgage. There are now a reasonable range of products available to
ex-bankrupts at reasonable rates.
In order to apply for a mortgage you will
need to be discharged as a bankrupt. Following a recent change
in the law bankrupts can now become discharged and walk away
from their debts after only one year instead of three. The
change was introduced to help entrepreneurs and small businesses
get back on their feet if they had failed.
Through this website you can be put in touch
with an independent mortgage broker who has experience in
helping discharged bankrupts. They have the expertise and the established
relationship with suitable lenders and will know who is likely
to provide you with finance.
Some people have used an
individual voluntary arrangement (IVA) as route out of debt. This is a formal agreement
between debtors and creditors to repay debts over a set period,
typically five years, through monthly payments. Again, people
who have had an IVA will experience problems and an expert
advisor can suggest what options are available to you.
Simply complete the enquiry form
and get a FREE no obligation quote.