Mortgages for Discharged Bankrupts
Bankruptcy is considered to be one of the more challenging aspects to arranging adverse credit mortgages.
The mere mention of a previous bankruptcy can often cause most mortgage brokers to run for the hills, but we are not most mortgage brokers! As the table below shows, the options are a little more positive than most would assume. The reality is that there are mortgages for discharged bankrupts out there! Actually quite a few will consider you.
That’s not to say that arranging a mortgage where there has been a bankruptcy in the past will be easy; it wont be.
There are a multitude of factors that go alongside this that need to be addressed. One of the chief issues is the fact that, after bankruptcy, people have found it difficult to obtain any kind of credit. So when applying to a lender they find they have what we would call a “thin file”. That is where there is little recent credit to allow the lenders algorithms to create a score.
Like almost all kinds of adverse credit, the rationale and reasons behind it also matter, and again this forms a big part of the research involved in placing cases such as this. Different lenders will accept different stories and understanding their attitudes is what we do well.
Many of the lenders in the table below take a different approach and underwrite cases manually instead of relying on computers. Knowing which lender to approach is where using a broker like AALTO Mortgages excels. Because we have almost certainly come across similar cases in the past decade, we know from past experience which lenders are most likely to offer mortgages for discharged bankrupts.
If you would like to find out more about the process of bankruptcy we recommend you consult with Citizens Advice who can provide impartial advice on how you should proceed.
Frequently Asked Questions
Click below to see some of the common questions asked by clients in relation to bankruptcy
There is some excellent information available through a now archived government leaflet that can be found here: https://www.hawkinsinsolvency.co.uk/what-will-happen-to-my-home
Both Bankruptcy and IVA’s are a type of Insolvency. There are some key differences:
IVA’s are worked out by an insovency practitioner, Bankruptcies are handled in court.
Bankruptcy is more expensive to arrange than an IVA
Bancruptcy’s cant be forced by a creditor unless you owe more than £5000.
Who will consider a mortgage for discharged bankrupts? The table below gives an impression of which lenders might consider someone who has a bankruptcy between 3 and 6 years.
Click here to view lender matrix
|Lender||Under 3 Yrs?||3 to 6 Yrs?||Over 6 years?|
|Accord||Not Accepted||Not Accepted||Considered|
|Barclays||Not Accepted||Not Accepted||Considered|
|Bath Building Society||Considered||Considered||Considered|
|Beverley Building Society||Not Accepted||Not Accepted||Considered|
|Buckinghamshire Building Society||Considered||Considered||Considered|
|Cambridge Building Society||Not Accepted||Considered||Considered|
|Chorley Building Society||Not Accepted||Considered||Considered|
|Clydesdale Bank||Not Accepted||Not Accepted||Not Accepted|
|Coventry||Not Accepted||Not Accepted||Considered|
|Dudley Building Society||Not Accepted||Considered||Considered|
|Earl Shilton Building Society||Not Accepted||Considered||Considered|
|Family Building Society||Not Accepted||Considered||Considered|
|Foundation Home Loans||Not Accepted||Considered||Considered|
|Furness Building Society||Not Accepted||Considered||Considered|
|Halifax||Not Accepted||Not Accepted||Considered|
|Hanley Economic Building Society||Not Accepted||Not Accepted||Considered|
|Harpenden BS||Not Accepted||Considered||Considered|
|Hinckley & Rugby||Not Accepted||Not Accepted||Considered|
|Ipswich Building Society||Not Accepted||Considered||Considered|
|Kensington||Not Accepted||Not Accepted||Not Accepted|
|Kent Reliance||Not Accepted||Considered||Considered|
|Leeds Building Society||Not Accepted||Not Accepted||Considered|
|Leek United Building Society||Not Accepted||Not Accepted||Considered|
|Loughborough Building Society||Not Accepted||Considered||Considered|
|Mansfield Building Society||Not Accepted||Considered||Considered|
|Market Harborough Building Society||Not Accepted||Not Accepted||Considered|
|Marsden Building Society||Not Accepted||Not Accepted||Not Accepted|
|MBS Lending Ltd||Considered||Considered||Considered|
|Melton Building Society||Not Accepted||Considered||Considered|
|Metro Bank||Not Accepted||Considered||Considered|
|Natwest||Not Accepted||Not Accepted||Considered|
|Newbury Building Society||Not Accepted||Considered||Considered|
|Newcastle Building Society||Not Accepted||Not Accepted||Not Accepted|
|Norton Home Loans||Considered||Considered||Considered|
|Nottingham Building Society||Not Accepted||Considered||Considered|
|Pepper Money||Not Accepted||Not Accepted||Considered|
|Platform||Not Accepted||Not Accepted||Considered|
|Precise Mortgages||Not Accepted||Not Accepted||Considered|
|Santander||Not Accepted||Not Accepted||Not Accepted|
|Scottish Building Society||Not Accepted||Considered||Considered|
|Stafford Railway Building Society||Not Accepted||Considered||Considered|
|Swansea Building Society||Considered||Considered||Considered|
|Teachers Building Society||Not Accepted||Considered||Considered|
|The Mortgage Lender||Not Accepted||Considered||Considered|
|Tipton & Coseley||Not Accepted||Not Accepted||Considered|
|TSB||Not Accepted||Not Accepted||Considered|
|United Trust Bank||Not Accepted||Not Accepted||Not Accepted|
|Vernon Building Society||Not Accepted||Considered||Considered|
|Vida Homeloans||Not Accepted||Not Accepted||Considered|
|Virgin Money||Not Accepted||Not Accepted||Not Accepted|
|West Brom for Intermediaries||Not Accepted||Considered||Considered|
Hopefully you found information above helpful. The next step is to get in touch with us so we can do what we do best: give you the benefit of our decades of experience. Don’t worry, there is absolutely zero cost for chatting to us and we will work with you as long as needs be to reach a solution. So why wait? Call us on 0207 183 1101 or contact us!