If at any point you find that you’re simply unable to pay the debts you’ve accrued, you may be able to consider applying for bankruptcy, which means that any and all assets you have will be used to settle what you owe.
It can be an effective way of bringing matters to a conclusion, but it is advisable to research other alternatives first, as bankruptcy may be able to make it difficult to gain access to finance in the future, such as a mortgage.
However, while it can be trickier, it’s certainly not impossible to get a mortgage after bankruptcy… but you may find it easier to get where you need to be if you have a debt adviser working on your behalf who specialises in adverse credit.
Lenders are, perhaps unsurprisingly, hesitant about lending to those with any kind of bad credit, but bankruptcy is one of their biggest concerns, so it’s important to know what to expect and where to go for finance. For example, there are specialist lenders out there who only offer mortgages to those with credit issues.
Note, as well, that you won’t be able to apply for a mortgage until you’ve been officially discharged. This typically takes 12 months, although it can be less than this. Once you’ve been discharged, it’s possible that lenders will find your application more appealing.
If you’ve only just been discharged from bankruptcy, it’s likely that you’ll need to have a substantial deposit backing you up and you may find you’re charged higher rates than normal, as you represent a riskier investment to creditors.
Interested to find out more about remortgaging after bankruptcy? Get in touch us today.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
Create Finance Limited. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, England, DE1 1EE. Registered in England Number: 09582938.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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