Are there mortgages for discharged bankrupts out there? The answer is Yes, definitely!

Documents relating to mortgages for discharged bankrupts
21 October 2019

Are there mortgages for discharged bankrupts out there? The answer is Yes, definitely!

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

Source: Insolvency Service. The number of people who became insolvent in England and Wales in 2018 was 115,299, a 16.2% rise on 2017 and the highest annual level of individual insolvencies since 2011. the highest annual level recorded. There were 27,683 DROs in 2018, which was an increase of 11.2% compared with 2017.29 Jan 2019

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.

 

Its possible yes.

If you are married and own the house as joint tenants then bankrupcy could result in the loss of your home.

Find out more at Citizens Advice

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Lender Matrix

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.

Lender Matrix

Click here to view lender matrix

Lender Under 3 Yrs? 3 to 6 Yrs? Over 6 years?
Accord Not Accepted Not Accepted Considered
Aldermore Considered Considered Considered
Barclays Not Accepted Not Accepted Considered
Bath Building Society Considered Considered Considered
Beverley Building Society Not Accepted Not Accepted Considered
Bluestone Mortgages Considered Considered 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
Darlington Not Accepted Considered 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
Masthaven Not Accepted Considered Considered
MBS Lending Ltd Considered Considered Considered
Melton Building Society Not Accepted Considered Considered
Metro Bank Not Accepted Considered Considered
Nationwide 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
Principality Not Accepted Considered Considered
Saffron Not Accepted Considered Considered
Santander Not Accepted Not Accepted Not Accepted
Scottish Building Society Not Accepted Considered Considered
Skipton 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
Together Money Considered Considered 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

 

Next steps

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!