Bankruptcy Mortgages - Get A Mortgage After Bankruptcy Discharge
By IC
In today’s world, mortgages are not uncommon. According to figures from the government’s Insolvency Service, in quarter three of 2007, there were 26,072 individual insolvencies in England and Wales. This was made up of 15,833 bankruptcies and 10,239 Individual Voluntary Arrangements (IVAs) – where you are still unable to borrow but you keep your property.

All of these people could be candidates to apply for mortgages. However, seeking out a mortgage at a time when you are clearly the most financially vulnerable is nothing to be taken lightly. That’s why it’s very important that you seek advice from an independent broker that specialises in this mortgages first, like The Mortgage Broker Limited (TMBL).

Why would I need to look at mortgages?
After you have been made bankrupt, you may be discharged (freed from obligations under the order) after one year, although a will stay on your credit file for at least six years. Your credit file is held (but not determined) by one of three credit reference agencies in the UK; namely Experian, Equifax and CallCredit and lenders will refer to this file before agreeing to lend to you. mortgages can be your only option during these years as mainstream lenders – that don’t offer mortgages – will not offer you a loan. Unfortunately, this is still the case if the occurred through no fault of your own; for example, your business folded or you got divorced.

How do mortgages work?
Bankruptcy mortgages are also known as ‘heavy subprime’ mortgages. In other words, they fall at the bottom end of the subprime spectrum; by contrast you could be at the top of this spectrum if you had just missed a couple of

credit card payments.

What’s the difference between standard and mortgages?
The main point of difference between standard and mortgages is their cost. Depending on when you were made bankrupt and under what circumstances, mortgages can be eye-wateringly expensive – to the point where it may not make sense to get one. This is the kind of information a broker that specialises in mortgages can help you with. The other main difference is that – as you are a maximum risk in the eyes of the lender, mortgages may require a larger deposit than on mainstream deals, as well as come with some hefty upfront fees and restrictive tie-ins.

Where can I get mortgages?
Even if you wanted to search for mortgages yourself, you may find that many of the specialist lenders that offer them only accept applications through a mortgage broker. This is because lenders must be very careful to protect themselves when it comes to mortgages, and taking an application through a specialist broker like TMBL means the risk has already been assessed and the relevant information has been packaged appropriately. So, when it comes to mortgages it makes sense to go to a broker for access to deals and well as to get the best one available.

TheMortgageBroker.co.uk provides expert advice about residential mortgages and re-mortgages. Get more information about self cert mortgage and all other mortgage questions, visit us today!