Mortgages for Discharged Bankrupts

by Digital Zone digital marketer

The common question that everyone has nowadays is: Can I get a mortgage if I have discharged bankruptcy? The answer is pretty simple, yes! But depends on when you were discharged and, in some cases, when your bankruptcy was registered. You won’t be able to get a mortgage if you are not officially discharged from your bankruptcy. Now you will ask, what do I need to know so that I can get mortgages even for discharged bankrupts. Independent Mortgage Brokers specialise in dealing with applicants with historic bankruptcies and have access to specialist lenders

Now let us look into mortgages for discharged bankrupts. Things that you should know:

Can you get a mortgage after bankruptcy?

It won't be as easy as you might think but here are some helpful tips and steps which will help you to get a mortgage even if you are a discharged bankrupt. There is no short or easy way when it comes to your mortgage application and it will depend on the date you became discharged, to confirm if a lender will consider your application. Some mortgage lenders consider unique cases individually, to those who are a discharged bankruptcy. Luckily, a few things can give you more chances to get a mortgage after bankruptcy, lenders will deal with your credit history, earningsand expenses. So, using a mortgage broker will confirm your mortgage eligibility. They will help you to find the right mortgage lender.

How long can you get a mortgage after Bankruptcy?

Do you know that the mortgage after bankruptcy is only available if you have completely been discharged? Generally, it takes around 12 months to be discharged completely. However, the court will decide when to discharge you from bankruptcy. Sometimes, some people wait very patiently for delayed discharge. A mortgage application for discharged bankrupt can be made, once the court agrees with the terms. The truth is lenders need to assess how much of risk you maybe first. Mostly, lenders will have limited criteria that you have to meet to get a mortgage when you’re a discharged bankrupt. It will get a bit difficult if you apply too early for a mortgage after bankruptcy. You need to find a broker that may help you and advise you of the most suitable lender.

What can make it harderto get mortgages after bankruptcy?

Typically, when you have a Bad Credit History Mortgages may be limited because may be concerned if you don't make repayments in the future. Additionally, if you are discharged from bankruptcy, a mortgage can be very hard to get due to your bad credit score. So, in this case one should seek mortgage advice for the best solution, for example, you need to agree to a lower loan to value and provide a larger deposit. It may become very challenging to get a mortgage after bankruptcy because discharging will not clear your previous history. Therefore, your previous credit issue will remain the same on your credit report for a total of 6 years, from when your bankruptcy was registered. When these 6 years get completed your opportunity to get a mortgage will greatly improve.

Will lenders ask you the cause for bankruptcy?

Every lender would ask you for the cause of bankruptcy and request an explanation. However, revealing this information would be advisable because it will help you to get a mortgage, as well as the trust of your lenders. If the bankruptcy was due to factors out of your control then they are much more likely to give a mortgage to a discharged bankrupt. So, if you explain yourself honestly that you are bankrupt because you lost your job, had a divorce, long term health issue or business collapsed then your lender might understand when it comes to your credit score.

How to know when is the right time?

If you are a discharged bankrupt then lenders will assess your application by using your credit score and reviewing your credit profile, to determine the risk you could put them in. After bankruptcy, your application is seen as a high risk. Though, there are specialist mortgage lender out there. Professional advice can help you identify who these are. If you have other credit issues by the time your bankrupt and discharged your possibilities of getting a mortgage would be lower than you expect. If you maintain an excellent credit score, this will positively affect your mortgage application.

Deposits for discharged bankrupts.

Generally, you will need a large deposit when applying for a mortgage. With a decent credit score, lenders are willing to consider applications from people with deposits as low as five per cent of the property market value and after time you will stand on the same ground. When you have been recently discharged from your bankruptcy you will be expected to hold a considerable starting point in the property, you might need to choose between fifteen per cent to thirty-five percent for deposit. Your post-bankruptcy finance depends on itself; this may be near to an impossibility. Again, the key factor here is time, all the savings each month moves towards the required deposit, from the date of the discharge and decrease the amount of the required down payments.

Conclusion.

Are you having trouble getting a mortgage due to discharge bankruptcy? If yes! then, Independent Mortgage Brokers is the right place to contact. We provide free mortgage advice, as well as online mortgage advice. Our team of dedicated mortgage brokers are here to help and guide you through the process. We cover a wide range of circumstances, including first time buyers, home movers, Buy-to-let and professional landlords, remortgaging, government help to buy schemes for new build homes, self-build and project finance.

If any another query click here: Online Mortgage Advisors