Can you get a mortgage after bankruptcy?

It may be possible to get a mortgage after bankruptcy but you will need the help of a specialist company. Further to this, it's important to remember that a mortgage after bankruptcy will cost you more, however, there are ways to reduce this cost.

Feel free to visit the credit after bankruptcy page for information on rebuilding your credit before applying for a mortgage or other forms of credit.

When you apply for a bankruptcy mortgage, a lender will consider you high risk. As such, their rates will be higher or they may decline you the mortgage. Further to this, a broker may have to work harder to find you the correct mortgage, hence their fees may be higher.

To increase the chances of a successful application and lower rates, the following information will help.

Who can help with mortgages after bankruptcy?

The three main types of organisations that can help you to find a mortgage after bankruptcy are:

  • Lenders (mortgage provider)
  • Brokers (mortgage arranger)
  • Introducers

Sometimes it can be beneficial to apply direct to a lender for a mortgage after bankruptcy. For example, if you have developed a credit history with them.

Brokers can specialise in getting people a mortgage after bankruptcy. Unless the broker is tied to a particular lender, it will generally have access to a number of lenders and will be able to help you select the best mortgage for your circumstances. They may also assist you with your application and provide mortgage advice.

Introducers act in a similar capacity as a broker, however, they will not usually give advice. They recognise that you have a requirement for mortgage and introduce you to a broker or a lender that can help you further.

Before you apply for a mortgage after bankruptcy

When you apply for a mortgage after bankruptcy, the lender will assess your credit report. It is highly likely that following bankruptcy your credit report will contain inaccuracies. This may cause a lender to decline your application for the mortgage.

To avoid being declined, you must order your three credit reports and check that they are accurate BEFORE applying for your mortgage.

The two main credit reference agencies are:

If you do find inaccuracies, contact the credit reference agency immediately as it may take a number of months to correct.

Repairing your credit can take time. For more information go to the credit repair after bankruptcy page.

Reducing the cost of a mortgage after bankruptcy

To reduce the overall cost of the mortgage after bankruptcy it is a good idea to look at a few key considerations. The less risky you are to the lender, the cheaper the mortgage will be.

  • Credit report - make sure it is accurate. Don't get declined or charged unnecessarily high fees and rates.
  • Deposit. The higher your deposit the greater the chance of a successful application and better rates.

You may also find it useful to Shop around. This is where a broker or introducer may help. You should compare:

  • Arrangement & broker fees
  • Redemption penalties
  • Interest rates
  • Mortgage type (fixed / variable)
  • Tie in period