Applying for a mortgage after bankruptcy is something that needs to be done in a timely manner, and will require patience.
The majority of mortgage lenders will require you to wait at least 2 years following your bankruptcy discharge date before considering your application.
However, you may be able to find a lender that will allow you to apply after only 18 months, on the flip side you may find you have to wait 2.
5 years before your application will be considered.
This is all down to the discretion of the lender, so if you are turned down by one, it doesn't mean you can't approach others, who may have different lending criteria.
When applying for a mortgage after bankruptcy, you will have to approach lenders that are specialists in bad credit lending, as their approval criteria will be different to those of mainstream lending institutions, and will take into account the fact that you are applying with a poor credit rating.
Most of these types of lenders will ask to see things such as proof of employment status, and that you have been in employment for a long period of time and that your employment is regarded as stable, they will also review your full credit report.
These are also areas that most mainstream lenders will look at, but with different approval criteria in mind.
High risk credit lenders are more than likely to ask for proof of savings, with a view to a down payment on your property.
It is common practice for these types of lenders to ask for a large deposit on your property, as this gives them extra security on their lending, the thought being that if you have made a substantial investment in the property yourself, you are much less likely to default on your payments as not only do your risk losing your home, but also the money that you have put towards it as a deposit.
There will be other criteria that will need to be met, but these will be lender specific, so you may find that some lenders are more suited to your needs than others.
If you find your aren't able to meet all the criteria set, then it may well be the case that you have to wait a little longer before making your application so you can meet all the requirements.
This is not such a bad thing as it gives you extra time to work on re-building your credit rating, and of course save more money for a deposit, both of which may well go towards securing yourself much more favourable lending rates and terms.
If you are struggling to find lenders that will consider your application, then you may find that going through a broker that specialises in applying for a mortgage after bankruptcy is the best way forward.
You will incur broker fees if you choose to take this route, however if you are unable to find a lender yourself and you can't afford to wait until you meet the required criteria of those you have already approached, then this could well be the best way to find yourself a mortgage.
Brokers do take a lot of the hassle out of applying for a mortgage after bankruptcy, as they will be able to look at your individual circumstances and recommend mortgages that will suit your needs, that they know your application will be considered for.
Once they have all your details they will be able to put you forward to a selection of lenders that they feel are suitable, taking all the stress and paperwork off your hands.
It is because of this, many people feel the fee that you have to pay for this service is more than worth it.
The majority of mortgage lenders will require you to wait at least 2 years following your bankruptcy discharge date before considering your application.
However, you may be able to find a lender that will allow you to apply after only 18 months, on the flip side you may find you have to wait 2.
5 years before your application will be considered.
This is all down to the discretion of the lender, so if you are turned down by one, it doesn't mean you can't approach others, who may have different lending criteria.
When applying for a mortgage after bankruptcy, you will have to approach lenders that are specialists in bad credit lending, as their approval criteria will be different to those of mainstream lending institutions, and will take into account the fact that you are applying with a poor credit rating.
Most of these types of lenders will ask to see things such as proof of employment status, and that you have been in employment for a long period of time and that your employment is regarded as stable, they will also review your full credit report.
These are also areas that most mainstream lenders will look at, but with different approval criteria in mind.
High risk credit lenders are more than likely to ask for proof of savings, with a view to a down payment on your property.
It is common practice for these types of lenders to ask for a large deposit on your property, as this gives them extra security on their lending, the thought being that if you have made a substantial investment in the property yourself, you are much less likely to default on your payments as not only do your risk losing your home, but also the money that you have put towards it as a deposit.
There will be other criteria that will need to be met, but these will be lender specific, so you may find that some lenders are more suited to your needs than others.
If you find your aren't able to meet all the criteria set, then it may well be the case that you have to wait a little longer before making your application so you can meet all the requirements.
This is not such a bad thing as it gives you extra time to work on re-building your credit rating, and of course save more money for a deposit, both of which may well go towards securing yourself much more favourable lending rates and terms.
If you are struggling to find lenders that will consider your application, then you may find that going through a broker that specialises in applying for a mortgage after bankruptcy is the best way forward.
You will incur broker fees if you choose to take this route, however if you are unable to find a lender yourself and you can't afford to wait until you meet the required criteria of those you have already approached, then this could well be the best way to find yourself a mortgage.
Brokers do take a lot of the hassle out of applying for a mortgage after bankruptcy, as they will be able to look at your individual circumstances and recommend mortgages that will suit your needs, that they know your application will be considered for.
Once they have all your details they will be able to put you forward to a selection of lenders that they feel are suitable, taking all the stress and paperwork off your hands.
It is because of this, many people feel the fee that you have to pay for this service is more than worth it.
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