If you have been made bankrupt you might be wondering whether you will be able to get a mortgage approved in the future. While it will be more difficult to get a standard mortgage after bankruptcy, in most cases, there will still be some options available.
In this article, we answer some common questions about applying for a mortgage after bankruptcy to help you to understand where you stand.
Can you get a mortgage after bankruptcy?
Yes, it is still possible to get a mortgage after bankruptcy but there will be fewer options available. You might not be able to obtain a mortgage from a bank but reputable brokers have access to specialist lenders who are more likely to approve an application post-bankruptcy.
How long after bankruptcy can you apply?
You can apply for a mortgage once you have been discharged but you may be required to provide a larger deposit, and the interest rates will usually be higher than if you wait a few years after discharge.
Each lender has different criteria, so there are a limited number of lenders who will be willing to approve a mortgage immediately after being discharged, while others may require you to wait for a set period of time, usually between one and six years. After six years, bankruptcy is removed from your credit file, and you will have a wider range of deals you can apply for.
How lenders view your credit history
When you apply for a mortgage, lenders review your credit history to check for adverse credit including bankruptcy, late payments and CCJs. It can take a while to rebuild your credit score after bankruptcy and during this time you will be classed as a high-risk borrower, therefore you are likely to be declined for loans from standard lenders.
A mortgage broker can help you to find mortgage products from lenders who specialise in mortgages for applicants who have been made bankrupt.
