Borrowing After Bankruptcy
Borrowing after bankruptcy will almost certainly be required if purchasing a property. As previously stated obtaining finance after bankruptcy is not impossible.
If you have any questions about borrowing after bankruptcy then please feel free to ask (ask piggy). You may also like to see Piggy's Bankruptcy Loan Site.
There are companies willing to lend to discharged bankrupts although you should understand that the average high street lender is very unlikely to. When making lending decisions the lender will usually score you against their own criteria. The factors they usually take into account include:
- Credit history
- Debt to income ratio (lower the better)
- Expenditure to income ratio (lower the better - shop around and get better deals!!!)
- Nature and length of employment (Most stable and longest the best)
- Your profession (Most stable best)
- Savings or current account with the lender
- Property ownership
If there is a bankruptcy restriction order or bankruptcy restriction undertaking in place then it may be even more difficult to obtain credit as a discharged bankrupt.
On the plus side, as a discharged bankrupt you will probably have no debt and hence a greater affordability. This can further be improved by looking to reduce your current expenditure by shopping around. For example, a cheaper gas and electricity supplier.
