# Bankruptcy & Subsequent Mortgage



## Taxboy (Aug 23, 2006)

I ran into a relative over the Xmas break who I knew had some personal issues a few years back and eventually went bankrupt. He's now turned his life around has got a steady job and is looking to get married. However he told me that when he went to his bank to see if there was any chance to get a mortgage he was told he needed to wait for another couple of years until his bankruptcy time limit had elapsed before they would consider him for a loan.

I know there are some financially savvy people on here and wondered if what he was told applies generally or if there are lenders out there prepared to offer a mortgage before the end of the 6 years.

Any advice appreciated


----------



## empsburna (Apr 5, 2006)

You might get offered one but the package will be terrible.

A good ( independent) mortgage / financial advisor should know where to go but be prepared for a big deposit and unfavourable interest rates.


----------



## Titanium Htail (Mar 24, 2012)

At the end of the term it may be possible to compare and contrast offers, dependent on individual circumstances then.

https://www.gov.uk/bankruptcy/when-bankruptcy-ends

John Tht.


----------



## Taxboy (Aug 23, 2006)

empsburna said:


> You might get offered one but the package will be terrible.
> 
> A good ( independent) mortgage / financial advisor should know where to go but be prepared for a big deposit and unfavourable interest rates.


Thanks for that. Any idea of ball park rates and Loan to Values that might apply ?


----------



## Titanium Htail (Mar 24, 2012)

Phone round yourself where possible.


The ones that said yes were: 
Norwich & Peterbororgh
Saffron BS
/skipton BS
Tipton & Coseley
Cheltenham and Gloucester
Halifax
Manchester BS
Yorkshire BS
Barnsley BS
Cambridge BS
Coventry BS
Clydesdale Bank
Dudley BS
Furness BS
Kent Reliance
Leeds BS
Leek United


----------



## staffordian (May 2, 2012)

As I understand it, one key thing is to rebuild credit rating which will clearly influence a potential mortgage lender's attitude.

There are sites giving advice on this, but if not done already, things such as running a bank account without going overdrawn, getting a credit card if possible and repaying in full every month help do this, and there are doubtless other things which will help too.


----------



## leehob (Jul 9, 2014)

There is lenders that will do it, the deposit needed would be around 40% though and rate would be very high, rebuild the credit rating where possible, start with a credit card and repay in full every month, very difficult to get a c card before the the 6 years is up though, get a credit report from experian and make sure all the companies that were owed money have changed the debt to settled, you can usually get a 30 day free trial with experian :thumb:


----------

